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Today's Coupons
 
  10-Year Notes   107-12.5 (+1-18.5)  
 
  FN 3.5% Coupon   103-30 (+1-07)  
 
  Support   2.594%  
 
  Resistance   0.336%  
 
 
 
 
  Monday, March 23, 2020
 
 

Treasury Yields Fall as Investors Await Stimulus Package

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 0.7404, 10.50 bps decreased from prior closing of 0.8454.

The Fed announced a massive initiative to support the US economy which included buying an unlimited amount of Treasuries and agency MBS. This huge step came after the Fed had said it would buy at least $500 billion of Treasuries and $200 billion of agency MBS a week ago. Treasury Secretary Mnuchin also added that Congress was very close to getting a fiscal stimulus done. Stock index futures initially plunged again, hitting their daily limits, but gradually recovered on the upbeat news. However, stocks took another downturn at the open as investors awaited Congress to agree on a stimulus bill. Spread of the coronavirus also does not appear to be slowing down; the total confirmed cases surpassed 350,000 globally and exceeded 35,000 in the US. Elsewhere, WTI crude struggled to recover, trading below $23 a barrel this morning. Lastly, we have a light economic calendar today with only one data release. Chicago Fed National Activity Index in February climbed to 0.16 from a downwardly revised prior of -0.33 vs. -0.35 consensus.

The curve has bull-flattened with UST 10-Year yield down 10.50 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/23 Chicago Fed Nat Activity Index 05:30 Feb -0.35 0.16 -0.25 -0.33  
                   
  03/24 Markit US Manufacturing PMI 06:45 Mar P 43.00 - 50.70 -  
                   
  03/24 Markit US Services PMI 06:45 Mar P 42.00 - 49.40 -  
                   
  03/24 Markit US Composite PMI 06:45 Mar P - - 49.60 -  
                   
  03/24 Richmond Fed Manufact. Index 07:00 Mar -15 - -2 -  
                   
  03/25 MBA Mortgage Applications 04:00 20 Mar - - -8.40% -  
                   
  03/25 Durable Goods Orders 05:30 Feb P -1.00% - -0.20% -  
                   
  03/25 Durables Ex Transportation 05:30 Feb P -0.40% - 0.80% -  
                   
  03/25 FHFA House Price Index MoM 06:00 Jan 0.40% - 0.60% -  
                   
  03/26 Wholesale Inventories MoM 05:30 Feb P -0.40% - -0.40% -  
                   
  03/26 GDP Annualized QoQ 05:30 4Q T 2.10% - 2.10% -  
                   
  03/26 Personal Consumption 05:30 4Q T 1.70% - 1.70% -  
                   
  03/26 GDP Price Index 05:30 4Q T 1.30% - 1.30% -  
                   
  03/26 Core PCE QoQ 05:30 4Q T 1.20% - 1.20% -  
                   
  03/26 Initial Jobless Claims 05:30 21 Mar 1400k - 281k -  
                   
  03/26 Continuing Claims 05:30 14 Mar 1782k - 1701k -  
                   
  03/26 Bloomberg Consumer Comfort 06:45 22 Mar - - 63.00 -  
                   
  03/27 PCE Core Deflator MoM 05:30 Feb 0.20% - 0.10% -  
                   
  03/27 Personal Income 05:30 Feb 0.40% - 0.60% -  
                   
  03/27 Personal Spending 05:30 Feb 0.20% - 0.20% -  
                   
  03/27 PCE Deflator MoM 05:30 Feb 0.10% - 0.10% -  
                   
  03/27 PCE Deflator YoY 05:30 Feb 1.70% - 1.70% -  
                   
  03/27 U. of Mich. Sentiment 07:00 Mar F 89.50 - 95.90 -
                   
 
 
 
 
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