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Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-20.5 (-00.5)  
 
  FN 3.5% Coupon   102-31.5 (00)  
 
  Support   2.784%  
 
  Resistance   1.762%  
 
 
 
 
  Monday, January 6, 2020
 
 

Treasury Yields Decline on Iran Fallout

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 1.7690, 1.91 bps decreased from prior closing of 1.7881.

Stocks fell for a second session as geopolitical tensions between the US and Iran rattled investors’ confidence. Haven assets are in demand this morning pushing Treasuries higher. Gold reached the highest level in more than six years, and the yen also touched the strongest level in three months. The sudden escalation of tension in the Middle East led Iraq’s parliament to vote to remove the US troops from the country, and Iran announced that it will no longer comply with uranium enrichment limits under the 2015 nuclear deal which dampened the recent upbeat investor sentiment buoyed by the planned signing of a US-China phase one trade deal. Oil prices are also affected by the tension in the Middle East with Brent futures reaching $70 a barrel and WTI trading above $63 a barrel. In the economic calendar, Markit US Services PMI printed 52.80, a 0.60 increase from both prior and consensus of 52.20. Markit US Composite PMI also edged higher to 52.70 from 52.20 prior. Later today, the US Treasury is scheduled to auction off $42 billion of 13-week bills and $36 billion of 26-week bills at 8:30 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 1.91 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  01/06 Markit US Services PMI 06:45 Dec F 52.20 52.80 52.20 -  
                   
  01/06 Markit US Composite PMI 06:45 Dec F - 52.70 52.20 -  
                   
  01/07 Trade Balance 05:30 Nov -$43.70B - -$47.20B -  
                   
  01/07 Factory Orders 07:00 Nov -0.70% - 0.30% -  
                   
  01/07 Durable Goods Orders 07:00 Nov F -2.00% - -2.00% -  
                   
  01/07 Durables Ex Transportation 07:00 Nov F - - 0.00% -  
                   
  01/08 MBA Mortgage Applications 04:00 3 Jan - - -5.30% -  
                   
  01/08 ADP Employment Change 05:15 Dec 160K - 67K -  
                   
  01/09 Initial Jobless Claims 05:30 4 Jan 220K - 222K -  
                   
  01/09 Continuing Claims 05:30 28 Dec 1719K - 1728K -  
                   
  01/09 Bloomberg Consumer Comfort 06:45 5 Jan - - 63.90 -  
                   
  01/10 Change in Nonfarm Payrolls 05:30 Dec 160K - 266K -  
                   
  01/10 Average Hourly Earnings MoM 05:30 Dec 0.30% - 0.20% -  
                   
  01/10 Average Hourly Earnings YoY 05:30 Dec 3.10% - 3.10% -  
                   
  01/10 Wholesale Inventories MoM 07:00 Nov F 0.00% - 0.00% -  
                   
  01/10 Wholesale Trade Sales MoM 07:00 Nov 0.20% - -0.70% -
                   
 
 
 
 
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