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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   97-01 (-1-02)  
 
  FN 2.5% Coupon   103-08.5 (-07.5)  
 
  Support   2.148%  
 
  Resistance   0.599%  
 
 
 
 
  Friday, June 5, 2020
 
 

Treasury Yields Jump after Surge in Jobs Report

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 0.9135, 9.01 bps increased from prior closing of 0.8234.

US stocks rallied this morning after a stronger-than-expected jobs report which bolstered optimism on the economic recovery from the pandemic. Treasuries sharply sold-off along with gold and the dollar held at a three-month low. Nonfarm Payrolls in May showed that US employers surprisingly added 2.509 million jobs while expectation was -7.500 million and prior reading was revised to -20.687 million which marked the largest tumble in records back to 1939. Unemployment Rate also slid to 13.30% from 14.70% prior vs. 19.00% consensus. The share of the unemployed on temporary layoff fell to 73% from a record high 78.3% as well. Industry sectors which led the big gains in equities this morning include airlines, hotels/resorts, cruises, and retailers. The tech-heavy Nasdaq 100 underperformed as investors are rotating away from the companies benefited from the quarantine. Elsewhere, WTI crude gained above $39 a barrel after Saudia Arabia and Russia clinched a deal with Iraq to curb the production even further in the coming months to make up for the recent over production.

The curve has bear-steepened with UST 10-Year yield up 9.01 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/01 Construction Spending MoM 07:00 Apr -7.00% -2.90% 0.90% 0.00%  
                   
  06/01 ISM Manufacturing 07:00 May 43.80 43.10 41.50 -  
                   
  06/01 ISM Prices Paid 07:00 May 40.00 40.80 35.30 -  
                   
  06/03 MBA Mortgage Applications 04:00 29 May - -3.90% 2.70% -  
                   
  06/03 ADP Employment Change 05:15 May -9000K -2760k -20236K -19557k  
                   
  06/03 Markit US Services PMI 06:45 May F 37.30 37.50 36.90 -  
                   
  06/03 Markit US Composite PMI 06:45 May F - 37.00 36.40 -  
                   
  06/03 Factory Orders 07:00 Apr -13.40% -13.00% -10.30% -11.00%  
                   
  06/03 Durable Goods Orders 07:00 Apr F -17.20% -17.70% -17.20% -  
                   
  06/03 Durables Ex Transportation 07:00 Apr F -7.40% -7.70% -7.40% -  
                   
  06/04 Trade Balance 05:30 Apr -$49.40b -$49.40b -$44.40b -$42.30b  
                   
  06/04 Initial Jobless Claims 05:30 30 May 1833K 1877K 2123K 2126K  
                   
  06/04 Continuing Claims 05:30 23 May 20000K 21487K 21052K 20838K  
                   
  06/04 Bloomberg Consumer Comfort 06:45 31 May - 37.00 35.50 -  
                   
  06/05 Change in Nonfarm Payrolls 05:30 May -7500K 2509K -20537K -20687K  
                   
  06/05 Average Hourly Earnings MoM 05:30 May 1.00% -1.00% 4.70% 4.70%  
                   
  06/05 Average Hourly Earnings YoY 05:30 May 8.50% 6.70% 7.90% 8.00%
                   
 
 
 
 
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