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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-20 (+03.5)  
  FN 2.5% Coupon   105-12.5 (+04)  
  Support   0.791%  
  Resistance   0.615%  
  Thursday, December 31, 2020

Treasury Yields Lower as Markets Move to Close the Year on Better Footing 

Market opened today's session with treasuries slightly higher across all maturities. 10-Year Treasury yield is at 0.9198, 0.33 bp decreased from prior closing of 0.9231.
US stocks opened higher this morning as equities remain near all time highs. Globally, European shares fell, meanwhile Asia saw equities close at record levels following the rollout of its first coronavirus vaccine for public use, in addition to showing steady economic recovery. The coronavirus pandemic has claimed over 1.8 million lives on a global scale, with a new more infectious strand of the virus surfacing in Singapore and California. Elsewhere, bitcoin surpassed $29,000 on Thursday, noting an increase of nearly 50% in the month of December. WTI crude lowered by 0.7% to $48.05 a barrel, meanwhile Gold increased by 0.2% to $1,898.61 an ounce. On the economic front, Initial Jobless Claims for the week ending December 26 reported better than expected at 787K claims. Falling to  a one month low, today's initial claims figure is accompanied by a drop in continuing claims for state aid as well. While the jobs market continues to face hurdles due to increasing Covid cases, vaccine rollout and new stimulus aid should provide a temporary cushion. Reporting next week on Monday is Markit US Manufacturing PMI, with expectations set at a slight decline towards 56.30.
The curve has bull-flattened with UST 10-Year yield down 0.33 bp.
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% 1.61% 1.27% 1.44%  
  12/29 S&P CoreLogic CS 20-City YoY NSA 06:00 Oct 6.95% 7.95% 6.57% 6.64%  
  12/30 Wholesale Inventories MoM 05:30 Nov P 0.60% -0.10% 1.10% 1.20%  
  12/31 Initial Jobless Claims 05:30 26 Dec 835k 787k 803k 806k  
  12/31 Continuing Claims 05:30 19 Dec 5370k 5219k 5337k 5322k  
  12/31 Bloomberg Consumer Comfort 06:45 27 Dec - 44.60 47.00 -  
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