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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   100-00 (+00.5)  
  FN 2.5% Coupon   104-09 (+03)  
  Support   2.138%  
  Resistance   0.620%  
  Tuesday, June 30, 2020

Treasury Yields Remain Flat as Stocks Wrap Up Best Quarter in Decades

Market opened today’s session with treasuries drifting across all maturities. 10-Year Treasury yield is at 0.6283, 0.49 bp increased from prior closing of 0.6234.

Stocks fluctuated as investors wrapped up the best quarterly performance since 1998. Due to the recent surge in coronavirus cases, optimism around the economic rebound has been shaken and the Fed is now preparing for the possibility of a second wave of the virus. In Asia, China’s top legislative body approved sweeping national security legislation for Hong Kong although key details remained secret. Hong Kong banned its biggest annual protest march for the first time due to the virus as well. Treasuries were little changed, and the dollar rose against its major peers. Elsewhere, WTI crude sank this morning, trading slightly above $39 a barrel. Later today, Federal Reserve chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee. The joint hearing will address the fiscal and monetary response to the pandemic shutdown. In the economic calendar, MNI Chicago PMI in June came in below consensus of 45.00 at 36.60 which rose from a prior reading of 32.30. Lastly, Conference Board Consumer Confidence in June surged to 98.10 from a downwardly revised prior of 85.90 vs. 91.50 consensus.

The curve has bear-steepened with UST 10-Year yield up 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% 0.33% 0.47% 0.49%  
  06/30 S&P CoreLogic CS 20-City YoY NSA 06:00 Mar 3.80% 3.98% 3.92% 3.91%  
  07/01 MBA Mortgage Applications 04:00 26 Jun - - -8.70% -  
  07/01 ADP Employment Change 05:15 Jun 2850k - -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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