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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-24 (-09.5)  
 
  FN 3.5% Coupon   102-18 (-03.5)  
 
  Support   3.237%  
 
  Resistance   1.610%  
 
 
 
 
Thursday, August 08, 2019
 
 
Treasury Yields Climb as China Calms Markets
 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 1.7636, 2.94 bps increased from prior closing of 1.7342.

US stock futures advanced after Chinese policy makers tried to calm the worries looming over currency war by fixing the yuan stronger than expected. While the level was still weaker than 7 to the dollar for the first time since 2008, market participants perceived the action as China seeking stability in its currency. A 3.30% rise in Chinese exports in July also helped calm Wall Street down. Treasuries slipped along with the dollar and gold dipped after closing above $1,500 for the first time since 2013. In corporate news, Disney climbed in premarket after analysts citing expectation for a successful Disney+ launch. While the risk-off sentiment continued to reverberate through markets, crude dropped to its lowest in seven months yesterday. However, WTI crude bounced back above $52 a barrel this morning after Saudi Arabia contacted other producers to discuss options to suppress the ongoing rout caused by the escalating trade war.

Initial Jobless Claims inched lower to 209k from an upwardly revised prior of 217k vs. 215k consensus. Continuing Claims also slightly declined to 1684k below consensus of 1690k, following 1699k in prior. Bloomberg Consumer Comfort slid to 62.90 from 64.70 prior and Wholesale Inventories in June came in flat vs. both prior and consensus readings of 0.20%. Later today, the US Treasury is scheduled to auction off $50 billion of 4-week bills and $40 billion of 8-week bills at 8:30 AM (PT), and $19 billion of 30-year bonds at 10:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 2.94 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/05 Markit US Services PMI 06:45 Jul F 52.20 53.00 52.20 -  
                   
  08/05 Markit US Composite PMI 06:45 Jul F - 52.60 51.60 -  
                   
  08/06 JOLTS Job Openings 07:00 Jun 7326 7348 7323 7384  
                   
  08/07 MBA Mortgage Applications 04:00 2 Aug - 5.30% -1.40% -  
                   
  08/08 Initial Jobless Claims 05:30 3 Aug 215k 209k 215k 217k  
                   
  08/08 Continuing Claims 05:30 27 Jul 1690k 1684 1699k -  
                   
  08/08 Bloomberg Consumer Comfort 06:45 4 Aug - 62.90 64.70 -  
                   
  08/08 Wholesale Inventories MoM 07:00 Jun F 0.20% 0.00% 0.20% -  
                   
  08/09 PPI Final Demand MoM 05:30 Jul 0.20% - 0.10% -  
                   
  08/09 PPI Final Demand YoY 05:30 Jul 1.70% - 1.70% -
                   
 
 
 
 
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