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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-08.5 (-08)  
  FN 2.5% Coupon   105-04.5 (+01.5)  
  Support   0.791%  
  Resistance   0.615%  
  Monday, December 28, 2020

Treasury Yields Rise as Coronavirus Aid Moves Forward

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.9531, 3.00 bps increased from prior closing of 0.9231.
US equities opened higher this morning after US President Donald Trump signed off on a $2.3 trillion coronavirus aid package. Trump continued to push for $2,000 stimulus payments, however this request is non-binding unless passed by lawmakers, which seems very unlikely. From a global standpoint, coronavirus measures continue kicking off, with Japan banning entry to foreigners through the end of January, 2021. Elsewhere, Alibaba Group Holding Ltd. saw shares fall in Hong Kong, even after increasing its buy-back program by $10 billion, a move that comes amidst increased scrutiny by Chinese authorities over monopolistic practices. In other news, Bitcoin surpassed $28,000 on Sunday, while WTI crude fell by 0.2% and Gold rose by 0.3%. On the economic front, reporting later today is the Dallas Fed Manufacturing Activity Index, with expectations set for a slight decrease towards 11.60, for the month of December. Reporting later this week on Wednesday are Wholesale Inventories MoM and MNI Chicago PMI, both expected at 0.60% and 56.30, respectively.
The curve has bear-steepened with UST 10-Year yield up 3.00 bps.
This Week's Events
  12/28 Dallas Fed Manf. Activity 07:30 Dec 11.60 9.70 12.00 -  
  12/29 S&P CoreLogic CS 20-City MoM SA 06:00 Oct 1.00% - 1.27% -  
  12/29 S&P CoreLogic CS 20-City YoY NSA 06:00 Oct 6.95% - 6.57% -  
  12/30 Wholesale Inventories MoM 05:30 Nov P 0.60% - 1.10% -  
  12/31 Initial Jobless Claims 05:30 26 Dec 830k - 803k -  
  12/31 Continuing Claims 05:30 19 Dec 5390k - 5337k -  
  12/31 Bloomberg Consumer Comfort 06:45 27 Dec - - 47.00 -  
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