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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   98-26 (-14)  
  FN 2.5% Coupon   104-20.5 (-05)  
  Support   0.747%  
  Resistance   0.599%  
  Monday, October 5, 2020

Treasury Yields Rise As Markets Rally

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.7518, 5.13 bps increased from prior closing of 0.7005.

US stocks opened higher this morning with the S&P, Nasdaq, and Dow Jones rebounding from Friday levels. Notable gainers include Regeneron Pharmaceuticals, which rallied following news it was providing President Donald Trump an experimental antibody treatment. While Donald Trump's medical team have highlighted an optimistic recovery by the president, conflicting information given by medical professionals cast doubt on whether or not the president will be released from the hospital in the near future. Elsewhere, stimulus talks continue as Joe Biden pushes ahead in the polls, signaling a clear winner could be ascertained following the November third election. In Global news, Cineworld Group Plc fell, even as European stocks rallied, following news that the theater-chain will be closing operations in both the US and UK. The Taiwanese Dollar closed at the highest level since 2011 as the central bank is speculated to loosen its grip on the currency. WTI crude surged 5.3% reaching $39.02 a barrel as Gold strengthened by 0.4%. Coming up later this week on Wednesday, the first US Vice Presidential debates of 2020 will be hosted in Salt Lake City, pitting Republican incumbent Mike Pence against Democratic contender Kamala Harris. Additionally, International Trade Balance will also be reported Wednesday as net trade is expected to bring down Q3 GDP. Jobless Claims are expected to continue declining on Thursday, with claims forecasted at 820 thousand in comparison to the previously reported figure of 837 thousand.

The curve has bear-steepened with UST 10-Year yield up 5.13 bps.
This Week's Events
  10/05 Markit US Services PMI 06:45 Sep F 54.60 54.60 54.60 -  
  10/05 Markit US Composite PMI 06:45 Sep F - 54.30 54.40 -  
  10/06 Trade Balance 05:30 Aug -$66.20b - -$63.60b -  
  10/06 JOLTS Job Openings 07:00 Aug 6500 - 6618 -  
  10/07 MBA Mortgage Applications 04:00 2 Oct - - -4.80% -  
  10/08 Initial Jobless Claims 05:30 3 Oct 820k - 837k -  
  10/08 Continuing Claims 05:30 26 Sep 11400k - 11767k -  
  10/08 Bloomberg Consumer Comfort 06:45 4 Oct - - 49.30 -  
  10/09 Wholesale Inventories MoM 07:00 Aug F 0.50% - 0.50% -
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