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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-19 (-08.5)  
  FN 2.5% Coupon   104-12.5 (-02.5)  
  Support   2.138%  
  Resistance   0.620%  
  Wednesday, July 8, 2020

Treasury Yields Climb as Tech Shares Gain

Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 0.6578, 1.81 bps increased from prior closing of 0.6397.

Apple and Microsoft led the rally in equities this morning and the companies that would benefit from the economy reopening turned around and added to the gains. Gold spot prices rose above $1,800 an ounce for the first time since 2011 this morning as investors continue to favor the traditional haven despite the loss in Treasuries and the dollar this morning. In Asia, tensions between the US and China have been growing after China’s recent moves to reduce freedom in Hong Kong. It was reported today that some of President Trump’s advisors proposed a move to undermine Hong Kong’s currency peg to the dollar as a way of punishing China. Elsewhere, WTI crude slightly rose above $ 40 a barrel. In the economic calendar, MBA mortgage applications index rose 2.20% after falling 1.80% in prior week. Both purchases and refinances increased 5.30% and 0.40% after falling 1.30% and 2.20% in prior week, respectively. Tomorrow, all eyes will be on jobless claims reports, scheduled to be released at 5:30 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 1.81 bps.
This Week's Events
  07/06 Markit US Services PMI 06:45 Jun F 46.90 47.90 46.70 -  
  07/06 Markit US Composite PMI 06:45 Jun F - 47.90 46.80 -  
  07/07 JOLTS Job Openings 07:00 May 4500 5397 5046 4996  
  07/08 MBA Mortgage Applications 04:00 3 Jul - 2.20% -1.80% -  
  07/09 Initial Jobless Claims 05:30 4 Jul 1375K - 1427K -  
  07/09 Continuing Claims 05:30 27 Jun 18750K - 19290K -  
  07/09 Bloomberg Consumer Comfort 06:45 5 Jul - - 43.30 -  
  07/10 PPI Final Demand MoM 05:30 Jun 0.40% - 0.40% -  
  07/10 PPI Final Demand YoY 05:30 Jun -0.20% - -0.80% -
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