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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-27.5 (00)  
  FN 2.5% Coupon   104-05 (+01)  
  Support   2.138%  
  Resistance   0.630%  
  Monday, June 29, 2020

Treasury Yields Drift Despite Improved Economic Data

Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 0.6364, 0.49 bp decreased from prior closing of 0.6413.

Stocks fluctuated to start a short week as the surge in coronavirus cases over the weekend indicated that the pandemic might be far from over. On Saturday, Florida reported a one-day record of cases of 9,636, and an additional 8,577 on Sunday. WHO Director General Tedros Adhanom Ghebreyesus warned that the pandemic has entered a "new and dangerous phase". On corporate news, Boeing climbed as US aviation regulators approved certification flights for the Boeing 737 Max after its worst corporate crisis which began in March of last year. Treasuries drifted and the dollar rose. Elsewhere, WTI crude steadied this morning as the spike in coronavirus cases offset the improving economic data, trading slightly below $39 a barrel. In the economic calendar, Pending Home Sales in May sharply surged to 44.30% from -21.80% prior, topping the estimate of 19.30% and marking the largest one-month jump in the history of the survey, which dates back to 2001. Lastly, Dallas Fed Manufacturing Activity in June also sharply improved to -6.10 from -49.20 prior vs. -21.40 consensus. Tomorrow, Fed Chair Powell and Treasury Secretary Mnuchin will testify before the House Financial Services Committee.

The curve has bull-steepened with UST 10-Year yield down 0.49 bp.
This Week's Events
  06/29 Dallas Fed Manf. Activity 07:30 Jun -21.40 -6.10 -49.20 -  
  06/30 S&P CoreLogic CS 20-City MoM SA 06:00 Apr 0.50% - 0.47% -  
  06/30 S&P CoreLogic CS 20-City YoY NSA 06:00 Mar 3.70% - 3.92% -  
  07/01 MBA Mortgage Applications 04:00 26 Jun - - -8.70% -  
  07/01 ADP Employment Change 05:15 Jun 2950k - -2760k -  
  07/01 Markit US Manufacturing PMI 06:45 Jun F 49.60 - 49.60 -  
  07/02 Initial Jobless Claims 05:30 27 Jun 1336k - 1480k -  
  07/02 Continuing Claims 05:30 20 Jun 18904k - 19522k -  
  07/02 Bloomberg Consumer Comfort 06:45 28 Jun - - 41.40 -  
  07/02 Durables Ex Transportation 07:00 May 4.00% - 4.00% -  
  07/02 Durable Goods Orders 07:00 May F 15.80% - 15.80% -
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