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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   100-00.5 (+13)  
  FN 2.5% Coupon   104-19 (+01.5)  
  Support   2.138%  
  Resistance   0.620%  
  Thursday, July 9, 2020

Treasury Yields Lower as Stocks Struggle on Economic Outlook

Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 0.6365, 2.79 bps decreased from prior closing of 0.6644.

US stocks were mixed this morning as investors weighed better-than-expected jobless data against the recent global coronavirus spikes. The Nasdaq Composite hit an all-time high today as major tech shares outperformed with concerns that the increase in coronavirus cases potentially prolonging the economic downturn and the lockdown. Treasury slightly edged higher and the dollar slumped. Elsewhere, gold held above $1,800 an ounce and WTI crude slumped after US crude stockpile report raised concerns about oversupply, coupled with ongoing demand issue. The anticipated jobless claims data showed that applications for initial unemployment benefits declined by more than forecasted, easing concerns of a renewed downturn in the labor market. 1.314 million Americans filed for the benefits last week, declining from a downwardly revised prior reading of 1.413 million and against 1.375 million consensus. Continuing Claims also fell to 18.062 million from a downwardly revised prior of 18.76 million. Wholesale Inventories remained unchanged at -1.20% but Bloomberg Consumer Comfort index slightly edged lower to 42.90 from 43.30 prior.

The curve has bull-flattened with UST 10-Year yield down 2.79 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 1314K 1427K 1413K  
  07/09 Continuing Claims 05:30 27 Jun 18800K 18062K 19290K 18760K  
  07/09 Bloomberg Consumer Comfort 06:45 5 Jul - 42.90 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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