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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-10.5 (-03.5)  
 
  FN 3.5% Coupon   98-15.5 (-01.5)  
 
  Support   3.111%  
 
  Resistance   2.761%  
 
 
 
 
Tuesday, May 22, 2018
 
 
Treasuries are slightly lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 3.070% after closing at 3.061% prior.

Treasury yields inched higher overnight and early into the open as investors continued to digest the eased tension between U.S. and China. There will not be any new tariffs while the trade talks are in progress, momentarily putting the “trade war” on hold. Other than geopolitical news, investors will also be focusing on central banks this week. The FOMC Minutes from the May Fed meeting is scheduled to be released tomorrow, while the release of the ECB monetary policy accounts from last week’s meeting will be released on Thursday.

Today is another slow economic calendar with only the Richmond Fed Manufacturing Index for the month of May on deck. The index came in well above expectations with a reading level of 16.00 versus 10.00 per consensus. Despite dropping to -3.00 in April, which was its lowest reading since September 2016, May’s index extends the recent run of positive Fed Bank activity surveys. Later today at 10:00 AM (PT), Treasury will auction $33 billion 2-Year Notes.

The curve has bear-steepened with the UST 10-Year yield up 0.9 bp from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/21 Chicago Fed Nat Activity Index 05:30 Apr 0.30 0.34 0.10 0.32  
                   
  05/22 Richmond Fed Manufact. Index 07:00 May 10.00 16.00 -3.00 -  
                   
  05/23 MBA Mortgage Applications 04:00 18 May - - -2.70% -  
                   
  05/23 Markit US Manufacturing PMI 06:45 May P 56.50 - 56.50 -  
                   
  05/23 Markit US Services PMI 06:45 May P 55.00 - 54.60 -  
                   
  05/23 Markit US Composite PMI 06:45 May P - - 54.90 -  
                   
  05/23 New Home Sales 07:00 Apr 679K - 694K -  
                   
  05/23 New Home Sales MoM 07:00 Apr -2.20% - 4.00% -  
                   
  05/23 FOMC Meeting Minutes 11:00 2 May - - - -  
                   
  05/24 Initial Jobless Claims 05:30 19 May 220K - 222K -  
                   
  05/24 Continuing Claims 05:30 12 May 1748k - 1707k -  
                   
  05/24 FHFA House Price Index MoM 06:00 Mar 0.60% - 0.60% -  
                   
  05/24 Bloomberg Consumer Comfort 06:45 20 May - - 54.60 -  
                   
  05/24 Existing Home Sales 07:00 Apr 5.55m - 5.60m -  
                   
  05/24 Existing Home Sales MoM 07:00 Apr -0.90% - 1.10% -  
                   
  05/24 Kansas City Fed Manf. Activity 08:00 May 20.00 - 26.00 -  
                   
  05/25 Durable Goods Orders 05:30 Apr P -1.30% - 2.60% -  
                   
  05/25 Durables Ex Transportation 05:30 Apr P 0.50% - 0.10% -  
                   
  05/25 U. of Mich. Sentiment 07:00 May F 98.80 - 98.80 -  
                   
 
 
 
 
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