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Market Commentary


 
Today's Coupons
 
  10-Year Notes   101-28.5 (+14.5)  
 
  FN 3.5% Coupon   103-12.5 (+08)  
 
  Support   2.268%  
 
  Resistance   2.159%  
 
 
 
 
Friday, June 2, 2017
 
 
Treasuries have modestly rallied across the curve this morning upon the release of disappointing Nonfarm Payrolls numbers for May. The UST 10-Year yield is currently at 2.173% after closing at 2.212% prior.

Treasury yields stumbled this morning with weaker than expected May Nonfarm Payrolls coming in at 138k versus an expected 182k per consensus. The April Nonfarm Payrolls were also substantially revised downwardly from 211k to 174k. Despite the dismaying jobs report, a bright spot was found in the Unemployment Rate, which fell to its lowest level since March 2001 at 4.30% from 4.40% in April. With the mixed data, investors do not see the drop in Payroll numbers affecting the Fed’s path on hiking the rate in their June meeting.

We also received the Trade Balance for April, which showed the deficit widened to $47.60 Billion from an upwardly revised $45.30 Billion in March. April exports were $191.00 Billion which was $0.50 Billion less than March exports, and April imports were $238.60 Billion which was $1.90 Billion more than March imports. There are two scheduled Fed Speaks later today, including Fed Harker who will speak on the economic outlook at 9:45 AM (PT), and Fed Kaplan who will participate in a moderate Q&A in Dallas at 10:00 AM (PT).

The curve has bull-flattened with the UST 10-Year down 3.9 bps from prior closing.

Have A Wonderful Weekend!
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/29 No Data - - - - - -  
                   
  05/30 Personal Income 05:30 Apr 0.40% 0.40% 0.20% -  
                   
  05/30 Personal Spending 05:30 Apr 0.40% 0.40% 0.00% 0.30%  
                   
  05/30 PCE Deflator MoM 05:30 Apr 0.20% 0.20% -0.20% -  
                   
  05/30 PCE Deflator YoY 05:30 Apr 1.70% 1.70% 1.80% 1.90%  
                   
  05/30 PCE Core MoM 05:30 Apr 0.10% 0.20% -0.10% -  
                   
  05/30 PCE Core YoY 05:30 Apr 1.50% 1.50% 1.60% -  
                   
  05/30 S&P CoreLogic CS 20-City MoM SA 06:00 Mar 0.90% 0.87% 0.69% 0.71%  
                   
  05/30 S&P CoreLogic CS 20-City YoY NSA 06:00 Mar 5.70% 5.89% 5.85% -  
                   
  05/30 Dallas Fed Manf. Activity 07:30 May 15.00 17.20 16.80 -  
                   
  05/31 MBA Mortgage Applications 04:00 26 May - -3.40% 4.40% -  
                   
  05/31 Pending Home Sales MoM 07:00 Apr 0.50% -1.30% -0.80% -0.90%  
                   
  05/31 U.S. Federal Reserve Releases Beige Book 11:00 - - - - -  
                   
  06/01 Challenger Job Cuts YoY 04:30 May - 71.40% -42.90% -  
                   
  06/01 ADP Employment Change 05:15 May 180k 253k 177k 174k  
                   
  06/01 Initial Jobless Claims 05:30 27 May 238k 248k 234k 235k  
                   
  06/01 Continuing Claims 05:30 20 May 1920k 1915k 1923k 1924k  
                   
  06/01 Markit US Manufacturing PMI 06:45 May F 52.50 52.70 52.50 -  
                   
  06/01 Bloomberg Consumer Comfort 06:45 28 May - 51.20 50.90 -  
                   
  06/01 ISM Manufacturing 07:00 May 54.80 54.90 54.80 -  
                   
  06/01 ISM Prices Paid 07:00 May 67.00 60.50 68.50 -  
                   
  06/01 Construction Spending MoM 07:00 Apr 0.50% -1.40% -0.20% 1.10%  
                   
  06/02 Change in Nonfarm Payrolls 05:30 May 182k 138k 211k 174k  
                   
  06/02 Trade Balance 05:30 Apr -$46.10b -$47.60b -$43.70b -$45.30b  
                   
  06/02 Unemployment Rate 05:30 May 4.40% 4.30% 4.40% -  
                   
  06/02 Average Hourly Earnings MoM 05:30 May 0.20% 0.20% 0.30% 0.20%  
                   
  06/02 Average Hourly Earnings YoY 05:30 May 2.60% 2.50% 2.50% -  
                   
  06/02 Labor Force Participation Rate 05:30 May 62.90% 62.70% 62.90% -  
                   
  06/02 Underemployment Rate 05:30 May - 8.40% 8.60% -  
                   
 
 
 
 
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