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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   100-13.5 (+06)  
  FN 2.5% Coupon   104-20.5 (+01.5)  
  Support   2.081%  
  Resistance   0.571%  
  Thursday, July 23, 2020

Treasury Yields Slightly Lower on Disappointing Unemployment Data

Market opened today’s session with treasuries slightly advancing across all maturities. 10-Year Treasury yield is at 0.5774, 1.97 bps decreased from prior closing of 0.5971.

US stocks were mixed this morning as investors digested a slew of corporate earnings and disappointing unemployment data. Despite stronger-than-expected figures, Microsoft slumped after the company said its transactional license purchasing continued to slow and its subsidiary LinkedIn underperformed due to the weak job market. Meanwhile, Tesla rose after posting its fourth consecutive quarter of profit and Twitter also gained after daily-user growth surged. Both the dollar and Treasuries advanced after US weekly jobless claims reported the 18th straight week in which initial claims above 1 million and the first increase since March. Initial jobless claims rose to 1.416 million from an upwardly revised prior of 1.307 million vs. 1.3 million consensus. Continuing Claims, on the other hand, edged lower to 16.197 million from a downwardly revised prior of 17.304 million. Bloomberg Consumer Comfort slightly increased to 44.70 from 44.30 prior and the lastly on the economic calendar, Leading Index in June edged lower to 2.00% from an upwardly revised prior of 3.20%. On the pandemic front, confirmed worldwide coronavirus cases exceeded 15 million, with little sign the pandemic is fading away. Although negotiators have not reached their final decisions yet, it was reported that the GOP was considering slashing the extra benefit for unemployment from $600 to $100 a week through the rest of the year.

The curve has bull-flattened with UST 10-Year yield down 1.97 bps.
This Week's Events
  07/20 No Data - - - - - -  
  07/21 Chicago Fed Nat Activity Index 05:30 Jun 4.00 4.11 2.61 3.50  
  07/22 MBA Mortgage Applications 04:00 17 Jul - 4.10% 5.10% -  
  07/22 FHFA House Price Index MoM 06:00 May 0.30% -0.30% 0.20% 0.10%  
  07/22 Existing Home Sales 07:00 Jun 4.75m 4.72m 3.91m -  
  07/22 Existing Home Sales MoM 07:00 Jun 21.40% 20.70% -9.70% -  
  07/23 Initial Jobless Claims 05:30 18 Jul 1300k 1416k 1300k 1307k  
  07/23 Continuing Claims 05:30 11 Jul 17100k 16197k 17338k 17304k  
  07/23 Bloomberg Consumer Comfort 06:45 19 Jul - 44.70 44.30 -  
  07/23 Leading Index 07:00 Jun 2.10% 2.00% 2.80% 3.20%  
  07/24 Markit US Services PMI 06:45 Jul P 51.00 - 47.90 -  
  07/24 Markit US Composite PMI 06:45 Jul P - - 47.90 -
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