Treasury Yields Remain Steady as Investors Digest Earnings Results
Market opened today’s session with treasuriesnearly unchanged across all maturities. 10-Yeartreasury yield is at 2.5217, 0.36 bp increased from prior closing of 2.5181.
Stocks were mixed this morning as investors parsed a slew of earnings reports. The DJIA slid after 3M reported earnings much lower than estimates. It also slashed its forecast and announced plans to cut 2,000 jobs worldwide. Tech shares, however, pointed to a small gain following strong results from Microsoft and Facebook after the Wednesday close. More than 170 S&P companies have reported their results so far and about 78.00% of those companies topped analysts’ expectations against a backdrop of global growth concerns. Corporate earnings will remain the biggest market focus for the rest of the week along with the initial print on first quarter US GDP tomorrow. Elsewhere, the dollar reached a four-month high and WTI crude edged below $66 a barrel this morning.
After 3 weeks of renewing its 49-year low, Initial Jobless Claims rose to 230k from an upwardly revised prior of 193k vs. 200k consensus. Continuing Claims, however, remained nearly unchanged at 1655k from an upwardly revised prior of 1654k vs. 1682k consensus. The headline Durable Goods Orders in March printed a strong reading of 2.70% vs. an upwardly revised prior of -1.10% and 0.80% consensus. The core also slightly climbed to 0.40% from a downwardly revised prior of -0.20% vs. 0.20% consensus. Lastly, Bloomberg Consumer Comfort came in at 60.80 vs. 60.30 prior. Later today, the US Treasury is scheduled to auction off $50 billion of 4-week bills and $35 billion of 8-week bills at 8:30 AM (PT), and $32 billion of 7-year notes at 10:00 AM (PT).
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Stocks were mixed this morning as investors parsed a slew of earnings reports. The DJIA slid after 3M reported earnings much lower than estimates. It also slashed its forecast and announced plans to cut 2,000 jobs worldwide. Tech shares, however, pointed to a small gain following strong results from Microsoft and Facebook after the Wednesday close. More than 170 S&P companies have reported their results so far and about 78.00% of those companies topped analysts’ expectations against a backdrop of global growth concerns. Corporate earnings will remain the biggest market focus for the rest of the week along with the initial print on first quarter US GDP tomorrow. Elsewhere, the dollar reached a four-month high and WTI crude edged below $66 a barrel this morning.
After 3 weeks of renewing its 49-year low, Initial Jobless Claims rose to 230k from an upwardly revised prior of 193k vs. 200k consensus. Continuing Claims, however, remained nearly unchanged at 1655k from an upwardly revised prior of 1654k vs. 1682k consensus. The headline Durable Goods Orders in March printed a strong reading of 2.70% vs. an upwardly revised prior of -1.10% and 0.80% consensus. The core also slightly climbed to 0.40% from a downwardly revised prior of -0.20% vs. 0.20% consensus. Lastly, Bloomberg Consumer Comfort came in at 60.80 vs. 60.30 prior. Later today, the US Treasury is scheduled to auction off $50 billion of 4-week bills and $35 billion of 8-week bills at 8:30 AM (PT), and $32 billion of 7-year notes at 10:00 AM (PT).
The curve has bear-flattened with UST 10-Year yield up 0.36 bp.