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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   99-17.5 (+07)  
 
  FN 2.5% Coupon   103-21 (+04)  
 
  Support   2.266%  
 
  Resistance   0.583%  
 
 
 
 
  Wednesday, May 27, 2020
 
 

Treasury Yields Lower as Tech Shares Slump

 
 
Market opened today’s session with treasuries advancing across all maturities. 10-Year Treasury yield is at 0.6623, 3.42 bps decreased from prior closing of 0.6965.

Stocks rose slightly with investors shying away from tech shares which held back possibly bigger gains. The optimism on the economy reopening continued its theme today with airlines and cruises shares advancing sharply. However, stocks which had benefited from people staying at home; tech sector, struggled this morning. Rising tensions between the US and China also dampened the optimism. President Trump added pressure on China over the crackdown in Hong Kong saying that his administration will act very powerfully, and China said it would retaliate if the US were to interfere with its internal affairs. Treasuries edged higher and WTI slumped below $33 a barrel this morning. In the economic calendar, MBA mortgage applications index rose 2.70% after falling 2.60% in prior week. Purchases increased 8.60% and refinances declined 0.20% after rising 6.40% and falling 6.30% in prior week, respectively. The increase in purchases was the highest level since January, indicating that the housing market is holding up better than expected with mortgage rates nearing record lows. Lastly, Richmond Fed Manufacturing Index in May improved to -27.00 from prior of -53.00 vs. -40.00 consensus. Later today, the Fed will release its Beige Book at 11:00 AM (PT), and we will have another jobless data from last week tomorrow.

The curve has bull-flattened with UST 10-Year yield down 3.42 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/26 Chicago Fed Nat Activity Index 05:30 Apr -3.50 -16.74 -4.19 -4.97  
                   
  05/26 FHFA House Price Index MoM 06:00 Mar 0.50% 0.10% 0.70% 0.80%  
                   
  05/26 S&P CoreLogic CS 20-City MoM SA 06:00 Mar 0.30% 0.47% 0.45% 0.52%  
                   
  05/26 S&P CoreLogic CS 20-City YoY NSA 06:00 Mar 3.44% 3.92% 3.47% 3.52%  
                   
  05/26 Dallas Fed Manf. Activity 07:30 May -61.00 -49.20 -73.70 -  
                   
  05/27 MBA Mortgage Applications 04:00 22 May - 2.70% -2.60% -  
                   
  05/27 Richmond Fed Manufact. Index 07:00 May -40.00 -27.00 -53.00 -  
                   
  05/28 GDP Annualized QoQ 05:30 1Q S -4.80% - -4.80% -  
                   
  05/28 Personal Consumption 05:30 1Q S -7.50% - -7.60% -  
                   
  05/28 GDP Price Index 05:30 1Q S 1.30% - 1.30% -  
                   
  05/28 Core PCE QoQ 05:30 1Q S 1.80% - 1.80% -  
                   
  05/28 Durable Goods Orders 05:30 Apr P -19.30% - -14.70% -  
                   
  05/28 Durables Ex Transportation 05:30 Apr P -15.00% - -0.40% -  
                   
  05/28 Initial Jobless Claims 05:30 23 May 2100k - 2438k -  
                   
  05/28 Continuing Claims 05:30 16 May 25500k - 25073k -  
                   
  05/28 Bloomberg Consumer Comfort 06:45 24 May - - 34.70 -  
                   
  05/29 PCE Core Deflator MoM 05:30 Apr -0.30% - -0.10% -  
                   
  05/29 Personal Income 05:30 Apr -6.50% - -2.00% -  
                   
  05/29 Personal Spending 05:30 Apr -13.00% - -7.50% -  
                   
  05/29 PCE Deflator MoM 05:30 Apr -0.60% - -0.30% -  
                   
  05/29 PCE Deflator YoY 05:30 Apr 1.10% - 1.70% -  
                   
  05/29 U. of Mich. Sentiment 07:00 May F 74.00 - 73.70 -
                   
 
 
 
 
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