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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   101-25 (+16)  
  FN 3.5% Coupon   103-28 (+06.5)  
  Support   2.166%  
  Resistance   2.056%  
Thursday, September 07, 2017
Treasuries are higher across the curve this morning from yesterday's close. The UST 10-Year yield is currently at 2.063% after closing at 2.105% prior.

Yesterday Treasuries sold off in response to the headline that President Trump and key Democrats reached an agreement to extend the debt ceiling and government spending authority through the middle of December. This morning treasuries recovered some of yesterday's losses when the ECB concluded that they will keep their stimulus package unchanged. Moreover, President Draghi did not announce a decision on how the ECB would proceed with buying bonds, and stated that the bulk of the decisions will be made in October.

This morning's economic calendar included the Initial Jobless Claims for the week ending on September 2nd which rose to 298k from 236k the week prior. Continuing Claims for the week ending on August 26th fell 5k to 1940k from an upwardly revised 1945k the week prior. We also received the Nonfarm Productivity for 2Q, which was revised upwardly to 1.50% from 0.90%, and the Unit Labor Costs for 2Q which was revised downwardly to 0.20% from 0.60%. There are several Fed members who are scheduled to speak today on the current Economic Outlook and Monetary Policy including Fed Mester, Fed Dudley and Fed George.

The curve has bull-flattened with the UST 10-Year down 4.2 bps from prior closing.
This Week's Events
  09/04 No Data - - - - - -  
  09/05 Factory Orders 07:00 Jul -3.30% -3.30% 3.00% 3.20%  
  09/05 Durable Goods Orders 07:00 Jul F -2.90% -6.80% -6.80% -  
  09/05 Durables Ex Transportation 07:00 Jul F - 0.60% 0.50% -  
  09/06 MBA Mortgage Applications 04:00 1 Sep - 3.30% -2.30% -  
  09/06 Trade Balance 05:30 Jul -$44.70b -$43.70b -$43.60b -$43.50b  
  09/06 Markit US Services PMI 06:45 Aug F 56.90 56.00 56.90 -  
  09/06 Markit US Composite PMI 06:45 Aug F - 55.30 56.00 -  
  09/06 U.S. Federal Reserve Releases Beige Book 11:00 - - - - -  
  09/07 Initial Jobless Claims 05:30 2 Sep 245k 298k 236k -  
  09/07 Continuing Claims 05:30 26 Aug 1945k 1940k 1942k 1945k  
  09/07 Nonfarm Productivity 05:30 2Q F 1.30% 1.50% 0.90% -  
  09/07 Unit Labor Costs 05:30 2Q F 0.30% 0.20% 0.60% -  
  09/07 Bloomberg Consumer Comfort 06:45 Sep - 52.60 53.30 -  
  09/08 Wholesale Inventories MoM 07:00 Jul F 0.40% - 0.40% -  
  09/08 Wholesale Trade Sales MoM 07:00 Jul 0.50% - 0.70% -  
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