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Market Commentary


 
Today's Coupons
 
  10-Year Notes   101-05 (+11)  
 
  FN 3.5% Coupon   101-3.5 (+04.5)  
 
  Support   3.237%  
 
  Resistance   2.457%  
 
 
 
 
Monday, May 06, 2019
 
 
Treasury Yields Lower as China Trade Tensions Flair
 
 
Market opened today’s session with treasuries advancing across all maturities. 10-Year treasury yield is at 2.4908, 3.42 bps decreased from prior closing of 2.5250.

Equities headed south and Treasuries advanced this morning after President Trump threatened to hike tariffs on goods imported from China, casting doubt on the chances of a resolution to the trade war. President Trump said in a tweet yesterday that the current 10.00% levies on $200 billion worth of Chinese goods will increase to 25.00% on Friday. Major tech and machinery companies with China exposure including Apple and Caterpillar, which have been seen as proxies for the trade war, were among the biggest decliners early this morning. China is reportedly considering cancelling the talk with the US this week, and China’s stock market also fell sharply on the news. Elsewhere, WTI crude continued to trade below $62 a barrel this morning. There are no scheduled economic data releases but later today, the US Treasury is scheduled to auction off $39 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 3.42 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/06 No Data - - - - - -  
                   
  05/07 JOLTS Job Openings 07:00 Mar 7350 - 7087 -  
                   
  05/08 MBA Mortgage Applications 04:00 3 May - - -4.30% -  
                   
  05/09 PPI Final Demand MoM 05:30 Apr 0.30% - 0.60% -  
                   
  05/09 PPI Final Demand YoY 05:30 Apr 2.30% - 2.20% -  
                   
  05/09 Trade Balance 05:30 Mar -$50.20b - -$49.40b -  
                   
  05/09 Initial Jobless Claims 05:30 4 May 220k - 230k -  
                   
  05/09 Continuing Claims 05:30 27 Apr 1670k - 1671k -  
                   
  05/09 Bloomberg Consumer Comfort 06:45 5 May - - 60.40 -  
                   
  05/09 Wholesale Inventories MoM 07:00 Mar F 0.00% - 0.00% -  
                   
  05/09 Wholesale Trade Sales MoM 07:00 Mar 0.60% - 0.30% -  
                   
  05/10 CPI MoM 05:30 Apr 0.40% - 0.40% -  
                   
  05/10 CPI YoY 05:30 Apr 2.10% - 1.90% -  
                   
  05/10 Monthly Budget Statement 11:00 Apr $165.00b - $214.30b -
                   
 
 
 
 
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