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Today's Coupons
 
  10-Year Notes   101-06.5 (+29.5)  
 
  FN 3.5% Coupon   103-14 (+03)  
 
  Support   2.753%  
 
  Resistance   1.359%  
 
 
 
 
  Monday, February 24, 2020
 
 

Treasury Yields Lower Further on Rapid Spread of Coronavirus

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 1.3655, 10.58 bps decreased from prior closing of 1.4713.

The coronavirus continued to dominate the market sentiment at the start of this week as many countries outside China struggled to contain the virus from spreading. The risk-off mood sent US stocks south along with equities in Europe and Asia. South Korea and Italy, in particular, reported a spike in the confirmed cases in recent days. Italy locked down an area of 50,000 people near Milan and South Korea raised its coronavirus alert to the highest level over the weekend. The total confirmed cases are now nearing 80,000 with the death toll at 2,627. Consequently, the treasury advanced with the 10-year yield sinking to its lowest since 2016. Also, gold spot price approached $1,700 while WTI crude tumbling more than 4%, trading below $51 a barrel this morning. An announcement from China easing the quarantine in Wuhan added to the anxiety but it was withdrawn hours later. In corporate news, earnings result will keep rolling in this week from companies including Home Depot, Peugeot, Best Buy and Dell.

Chicago Fed National Activity Index in January printed -0.25 below estimation of -0.18 with its prior reading revised to -0.51 from -0.35. 36 of the 85 monthly individual indicators made positive contributions while 49 indicators affected the index negatively. On the other hand, Dallas Fed Manufacturing Activity in February climbed to 1.20 from -0.20 prior vs. 0.00 consensus. Later today, the US Treasury is scheduled to auction off $45 billion of 13-week and $39 billion of 26-week bills at 8:30 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 10.58 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  02/24 Chicago Fed Nat Activity Index 05:30 Jan -0.18 -0.25 -0.35 -0.51  
                   
  02/24 Dallas Fed ManfActivity 07:30 Feb 0.00 1.20 -0.20 -  
                   
  02/25 FHFA House Price Index MoM 06:00 Dec 0.40% - 0.20% -  
                   
  02/25 S&P CoreLogic CS 20-City MoM SA 06:00 Dec 0.41% - 0.48% -  
                   
  02/25 S&P CoreLogic CS 20-City YoY NSA 06:00 Dec 2.80% - 2.55% -  
                   
  02/25 Richmond Fed Manufact. Index 07:00 Feb 10.00 - 20.00 -  
                   
  02/26 MBA Mortgage Applications 04:00 21 Feb - - -6.40% -  
                   
  02/27 GDP Annualized QoQ 05:30 4Q S 2.10% - 2.10% -  
                   
  02/27 Personal Consumption 05:30 4Q S 1.70% - 1.80% -  
                   
  02/27 GDP Price Index 05:30 4Q S 1.40% - 1.40% -  
                   
  02/27 Core PCE QoQ 05:30 4Q S 1.30% - 1.30% -  
                   
  02/27 Durable Goods Orders 05:30 Jan P -1.50% - 2.40% -  
                   
  02/27 Durables Ex Transportation 05:30 Jan P 0.20% - -0.10% -  
                   
  02/27 Initial Jobless Claims 05:30 22 Feb 212k - 210k -  
                   
  02/27 Continuing Claims 05:30 15 Feb 1719k - 1726k -  
                   
  02/27 Bloomberg Consumer Comfort 06:45 23 Feb - - 65.60 -  
                   
  02/27 Pending Home Sales MoM 07:00 Jan 3.00% - -4.90% -  
                   
  02/27 Pending Home Sales NSA YoY 07:00 Jan - - 6.80% -  
                   
  02/27 Kansas City Fed Manf. Activity 08:00 Feb -1.00 - -1.00 -  
                   
  02/28 PCE Core Deflator MoM 05:30 Jan 0.20% - 0.20% -  
                   
  02/28 Wholesale Inventories MoM 05:30 Jan P 0.10% - -0.20% -  
                   
  02/28 Personal Income 05:30 Jan 0.40% - 0.20% -  
                   
  02/28 Personal Spending 05:30 Jan 0.30% - 0.30% -  
                   
  02/28 PCE Deflator MoM 05:30 Jan 0.20% - 0.30% -  
                   
  02/28 PCE Deflator YoY 05:30 Jan 1.80% - 1.60% -  
                   
  02/28 U. of Mich. Sentiment 07:00 Feb F 100.70 - 100.90 -
                   
 
 
 
 
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