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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-19.5 (+06.5)  
 
  FN 3.5% Coupon   99-08 (+03)  
 
  Support   3.111%  
 
  Resistance   2.759%  
 
 
 
 
Tuesday, June 05, 2018
 
 
Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.929% after closing at 2.943% prior. 
Treasuries rose overnight and into the open on geopolitical news surrounding Italy’s newly-named Prime Minister Giuseppe Conte. The rally occurred during Conte’s speech in which he pledged to pursue a program of fiscal expansion, causing Italian yields to climb higher. This morning we received the final reading of the Markit US Services PMI for May which came in at 56.80 versus 55.70 prior; consensus called for the reading to hold steady at 55.70. Moreover, the May Markit US Composite PMI reading rose to 56.60 from 55.70 prior. We also received ISM Non-Manufacturing Composite for May which came in above expectations at 58.60 versus a reading of 57.60 per consensus.
Later this morning at 8:30 AM (PT), U.S. will sell $35 Billion of 4-Week Bills. Tomorrow we will have the 1Q final print of Nonfarm Productivity and Unit Labor Costs along with the Trade Balance for April on deck. On Thursday, the Consumer Credit data for April will be released, and on Friday we will receive the April Wholesale Trade Sales and Wholesale Inventories reports.
The curve has bull-flattened with the UST 10-Year yield down 1.4 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/04 Factory Orders 07:00 Apr -0.50% -0.80% 1.60% 1.70%  
                   
  06/04 Durable Goods Orders 07:00 Apr F - -1.60% -1.70% -  
                   
  06/04 Durables Ex Transportation 07:00 Apr F - 0.90% 0.90% -  
                   
  06/05 Markit US Services PMI 06:45 May F 55.70 56.80 55.70 -  
                   
  06/05 Markit US Composite PMI 06:45 May F - 56.60 55.70 -  
                   
  06/05 JOLTS Job Openings 07:00 Apr 6350 6698 6550 6633  
                   
  06/06 MBA Mortgage Applications 04:00 1 Jun - - -2.90% -  
                   
  06/06 Nonfarm Productivity 05:30 1Q F 0.60% - 0.70% -  
                   
  06/06 Unit Labor Costs 05:30 1Q F 2.80% - 2.70% -  
                   
  06/06 Trade Balance 05:30 Apr -$49.00b - -$49.00b -  
                   
  06/07 Initial Jobless Claims 05:30 2 Jun 221k - 221k -  
                   
  06/07 Continuing Claims 05:30 26 May 1740k - 1726k -  
                   
  06/07 Bloomberg Consumer Comfort 06:45 3 Jun - - 55.20 -  
                   
  06/08 Wholesale Trade Sales MoM 07:00 Apr - - 0.30% -  
                   
  06/08  Wholesale Inventories MoM 07:00 Apr F 0.00% - 0.00% -  
                   
 
 
 
 
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