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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   98-27.5 (-11)  
  FN 3.5% Coupon   102-17.5 (-04.5)  
  Support   2.472%  
  Resistance   2.271%  
Friday, November 10, 2017
Treasuries are lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.388% after closing at 2.355% during the prior session.

Republican efforts yesterday on both Houses of Congress fell short to fulfill an approximate $1.5 Trillion budget deficit over the next 10 years that both tax-reform proposals would produce. Writers of the bill in the House and the Senate are looking for ways to pay for the deep tax cuts, particularly at the corporate level, that the administration has promised. Differences that persist in both plans include the mortgage interest deduction, estate tax, personal income tax brackets, and offshore corporate earnings, among others. Both plans currently target a lower 20% corporate tax rate; and are set to move forward in the legislative calendar early next week.

The preliminary November University of Michigan Consumer Sentiment Index fell today to 97.80, below the market consensus of 100.80 and also lower than its previous 100.70 mark, amid expectations that inflation and interest rates could rise. The University’s preliminary November 1-Year Expected Inflation report registered a 2.60% change, slightly above its previous 2.40%; and its preliminary November 5-10 Year Expected Inflation report stayed in line with its previous mark at 2.50%. 

The curve has bear-steepened with the UST 10-Year yield up 3.3 bps from prior closing.

Have A Lovely Weekend!
This Week's Events
  11/06 No Data - - - - - -  
  11/07 JOLTS Job Openings 07:00 Sep 6075 6093 6082 6090  
  11/08 MBA Mortgage Applications 04:00 3 Nov - -0.03% -2.60% -  
  11/09 Initial Jobless Claims 05:30 4 Nov 232k 239k 229k -  
  11/09 Continuing Claims 05:30 28 Oct 1885k 1901k 1884k -  
  11/09 Bloomberg Consumer Comfort 06:45 5 Nov - 51.50 51.70 -  
  11/09 Wholesale Trade Sales MoM 07:00 Sep 0.90% 1.30% 1.70% 1.90%  
  11/09 Wholesale Inventories MoM 07:00 Sep F 0.30% 0.30% 0.30% -  
  11/10 U. of Mich. Sentiment 07:00 Nov P 100.80 97.80 100.70 -  
  11/10 Monthly Budget Statement 11:00 Oct -$50.00b - -$45.80b -  
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