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Market Commentary


 
Today's Coupons
 
  10-Year Notes   102-04 (-15)  
 
  FN 3.5% Coupon   101-31.5 (-06)  
 
  Support   3.237%  
 
  Resistance   2.062%  
 
 
 
 
Monday, June 10, 2019
 
 
Treasury Yields Rose after Mexico Trade Tension Eases
 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 2.1310, 5.01 bps increased from prior closing of 2.0809.

US stocks joined a global rally in equities after President Trump announced Sunday that proposed tariffs on imports from Mexico would be suspended indefinitely, easing some of the trade concerns. President Trump twitted that he has “full confidence” in Mexico’s tougher immigration enforcement. Treasuries slumped and the offshore yuan fell to its weakest level since November. As President Trump and his Chinese counterpart Xi are scheduled to meet at the G-20 summit later this month, Trump said today that if Xi skips the meeting, more tariffs on Chinese imports will become effective immediately. His latest threat was to impose more tariffs on another $300 billion in Chinese goods if they can’t reach an agreement soon. With growing trade tensions between the two countries, Chinese imports tumbled in May while exports unexpectedly increased which many perceived as weakness in domestic economy and signs that manufacturers are frontloading shipments before more tariffs become live. Elsewhere, WTI crude rallied above $54 a barrel this morning. JOLTS Job Openings in April printed 7449 vs. 7496 consensus, following a downwardly revised prior of 7474. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 5.01 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/10 JOLTS Job Openings 07:00 Apr 7496 7449 7488 7474  
                   
  06/11 NFIB Small Business Optimism 03:00 May 102.00 - 103.50 -  
                   
  06/11 PPI Final Demand MoM 05:30 May 0.10% - 0.20% -  
                   
  06/11 PPI Final Demand YoY 05:30 May 2.00% - 2.20% -  
                   
  06/12 MBA Mortgage Applications 04:00 7 Jun - - 1.50% -  
                   
  06/12 CPI MoM 05:30 May 0.10% - 0.30% -  
                   
  06/12 CPI YoY 05:30 May 1.90% - 2.00% -  
                   
  06/12 Monthly Budget Statement 11:00 May -$200.00b - $160.30b -  
                   
  06/13 Import Price Index MoM 05:30 May -0.20% - 0.20% -  
                   
  06/13 Import Price Index YoY 05:30 May -1.20% - -0.20% -  
                   
  06/13 Export Price Index MoM 05:30 May -0.20% - 0.20% -  
                   
  06/13 Export Price Index YoY 05:30 May - - 0.30% -  
                   
  06/13 Initial Jobless Claims 05:30 8 Jun 215k - 218k -  
                   
  06/13 Continuing Claims 05:30 1 Jun 1668k - 1682k -  
                   
  06/13 Bloomberg Consumer Comfort 06:45 9 Jun - - 61.70 -  
                   
  06/14 Retail Sales Advance MoM 05:30 May 0.60% - -0.20% -  
                   
  06/14 Industrial Production MoM 06:15 May 0.20% - -0.50% -  
                   
  06/14 Capacity Utilization 06:15 May 78.00% - 77.90% -  
                   
  06/14 U. of Mich. Sentiment 07:00 Jun P 98.00 - 100.00 -  
                   
  06/14 Business Inventories 07:00 Apr 0.50% - 0.00% -
                   
 
 
 
 
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