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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-13.5 (+02.5)  
  FN 2.5% Coupon   105-05.5 (+01)  
  Support   0.791%  
  Resistance   0.615%  
  Monday, December 21, 2020

Treasury Yields Fall as Britain Records a new Virus Strand

Market opened today's session with treasuries higher across all maturities. 10-Year Treasury yield is at 0.9296, 1.66 bps decreased from prior closing of 0.9462.
US stocks opened lower this morning as a new set of lockdowns were put in place worldwide. Notable early movers include Tesla Inc., which saw shares fall as much as 5% after its debut in the S&P 500. Additionally, businesses deemed to be the most susceptible to extended lockdowns fared the worst this morning as shares in Norwegian Cruise Line Holdings Ltd., Carnival Corp., American Airlines Group, and Cinemark Holdings Inc. all saw shares drop by at least 4%. On the bureaucratic front, US politicians came to an agreement over the weekend in regard to passing a $900 billion pandemic relief bill. In Europe, the pound moved lower as a new coronavirus strain was recorded in Britain. Additionally, Brexit talks once again hit a roadblock, with the likes of Italy, Netherlands, Belgium, and France all proceeding to close their borders with the UK. Elsewhere, Bitcoin hovered around $23,000, meanwhile, WTI Crude and Gold both dropped by 4.3% and 0.2%, respectively. Reporting tomorrow are Existing Home Sales and Annualized GDP QoQ, both expected at 6.7mm and 33.10%, respectively. US Jobless Claims, durables, and income data will be reported on Wednesday.
The curve has bull-flattened with UST 10-Year yield down 1.66 bps.
This Week's Events
  12/21 Chicago Fed Nat Activity Index 05:30 Nov 0.75 0.27 0.83 1.01  
  12/22 GDP Annualized QoQ 05:30 3Q T 33.10% - 33.10% -  
  12/22 GDP Price Index 05:30 3Q T 3.60% - 3.60% -  
  12/22 Conf. Board Consumer Confidence 07:00 Dec 97.00 - 96.10 -  
  12/22 Richmond Fed Manufact. Index 07:00 Dec 10.00 - 15.00 -  
  12/23 MBA Mortgage Applications  04:00 18 Dec - - 1.10% -  
  12/23 PCE Deflator MoM 05:30 Nov 0.10% - 0.00% -  
  12/23 PCE Deflator YoY 05:30 Nov 1.20% - 1.20% -  
  12/23 Initial Jobless Claims 05:30 19 Dec 880k - 885k -  
  12/23 Continuing Claims 05:30 12 Dec 5555k - 5508k -  
  12/23 Durable Goods Orders 05:30 Nov P 0.60% - 1.30% -  
  12/23 U. of Mich. Sentiment 07:00 Dec F 81.00 - 81.40 -  
  12/24 Bloomberg Consumer Comfort 06:45 20 Dec - - 48.40 -  
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