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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   1.593%  
 
  Support   1.595%  
 
  Resistance   1.268%  
 
  FN 2.5% Coupon   104.06 (00)  
 
 
 
 
  Monday, May 10, 2021
 
 

Tech Sector Leads Stocks Drop as Inflation Angst Rises

 
 
The Market opened today's session with treasuries higher across most maturities. The 10-year Treasury yield is currently at 1.5648, 1.23 bps lower than prior closing of 1.5771.

US stocks went down with Tech shares leading the drop as surging commodity prices created concerns regarding inflation. The tech-heavy Nasdaq 100 declined for the first time in three sessions with a 1.5% drop. Such anxiety over inflation may continue to threaten revenues within the sector. Alphabet and Facebook were downgraded to neutral from buy at Citigroup. The Dow Jones Industrial average rose to records highs with a 0.6% increase, while the S&P 500 Index was mostly unchanged. Treasury yields steadied as traders brace for a busy week of auctions. Copper jumped to a record high with Freeport-McMoRan leading the sector, meanwhile iron ore futures surged more than 10%, adding to the growing concerns regarding inflation. West Texas Intermediate and Brent both rose as gasoline surged as much as 4.2%, the highest since May 2018. Additionally, the pound climbed to its highest level since February, after UK elections denied Scotland's independence party an outright majority and strengthened the grip of Conservatives. On Wednesday comes out a US CPI report that is forecast to show price pressures increase in April. The data will be closely watched by policy makers at the Federal Reserve in order to gauge the speed of recovery after job growth significantly undershot forecasts.

The curve has bull-flattened with the UST 10-Year yield down 1.23 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/11 NFIB Small Business Optimism 03:00 Apr 101.00 - 98.20 -  
                   
  05/12 MBA Mortgage Applications 04:00 7 May - - -0.90% -  
                   
  05/12 CPI MoM 05:30 Apr 0.20% - 0.60% -  
                   
  05/12 CPI YoY 05:30 Apr 2.30% - 1.60% -  
                   
  05/12 CPI Index NSA 05:30 Apr 265.592 - 264.877 -  
                   
  05/12 CPI Core Index SA 05:30 Apr 271.950 - 271.214 -  
                   
  05/13 Initial Jobless Claims 05:30 8 May 490k - 498k -  
                   
  05/13 Continuing Claims 05:30 1 May 3645k - 3690k -  
                   
  05/14 Import Price Index YoY 05:30 Apr 10.20% - 6.90% -  
                   
  05/14 U. of Mich. Sentiment 07:00 May P 90.00 - 88.30 -
                   
 
 
 
 
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