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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   100-16 (-02)  
 
  FN 2.5% Coupon   105-11 (+02)  
 
  Support   1.942%  
 
  Resistance   0.505%  
 
 
 
 
  Monday, August 10, 2020
 
 

Treasury Yields Fall as Trump Signs Executive Orders

 
 
Market opened today’s session with treasuries inching higher across all maturities. 10-year Treasury yield is at 0.5542, 0.98 bp decreased from prior closing of 0.5640.

US Stocks opened higher this morning, approaching record levels as US President Donald Trump signed four executive orders over the weekend, extending economic aid after lawmaker negotiations fell short. These four executive orders target unemployment benefits, temporary payroll tax deferral, eviction protection, and student-loan relief. While the executive orders provide short-term relief, Democrats and Republicans alike continue discussions on a broader virus relief package, with pronounced differences falling on overall spending and key issues such as state and local government aid. S&P 500 continued to rise for the 7th straight day, approaching the record high set in February, before the coronavirus pandemic sent markets tumbling. Twitter climbed after Dow Jones reported that the company was in talks regarding a combination with TikTok. Casino shares also gained as China announced plans to resume issuing tourist visas for visitors to Macau. In world news, oil rose as Saudi Aramco stated demand will continue to improve, and Chinese equities climbed on the back of positive data indicating the economy continues to recover from the pandemic with consumer inflation accelerating. On the economic calendar, JOLTS job openings beat expectations of 5,300, reporting 5,889 openings for the month of June. More importantly, this week's economic calendar is expected to showcase a slowing recovery as the near-term trajectory of growth will depend significantly on the outcome of ongoing stimulus package negotiations. Important data releases to look out for this week are; PPI financial demand on Tuesday, MBA mortgage applications and MoM CPI on Wednesday, Initial Jobless Claims on Thursday, and Empire Manufacturing index on Friday.

The curve has bull-flattened with UST 10-Year yield down 0.98 bp.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/10 JOLTS Job Openings 07:00 Jun 5300 5889 5397 5371  
                   
  08/11 NFIB Small Business Optimism 03:00 Jul 100.40 - 100.60 -  
                   
  08/11 PPI Final Demand MoM 05:30 Jul 0.30% - -0.20% -  
                   
  08/11 PPI Final Demand YoY 05:30 Jul -0.70% - -0.80% -  
                   
  08/12 MBA Mortgage Applications 04:00 7 Aug - - -5.10% -  
                   
  08/12 CPI MoM 05:30 Jul 0.30% - 0.60% -  
                   
  08/12 CPI YoY 05:30 Jul 0.70% - 0.60% -  
                   
  08/12 CPI Index NSA 05:30 Jul 258.543 - 257.797 -  
                   
  08/12 CPI Core Index SA 05:30 Jul 266.585 - 266.065 -  
                   
  08/12 Monthly Budget Statement 11:00 Jul -$137.50B - -$119.70B    
                   
  08/13 Import Price Index MoM 05:30 Jul 0.60% - 1.40% -  
                   
  08/13 Import Price Index YoY 05:30 Jul -3.10% - -3.80% -  
                   
  08/13 Export Price Index MoM 05:30 Jul 0.40% - 1.40% -  
                   
  08/13 Export Price Index YoY 05:30 Jul - - -4.40% -  
                   
  08/13 Initial Jobless Claims 05:30 8 Aug 1100k - 1186k -  
                   
  08/13 Continuing Claims 05:30 1 Aug 15800k - 16107k -  
                   
  08/13 Bloomberg Consumer Comfort 06:45 9 Aug - - 44.90 -  
                   
  08/14 U. of Mich. Sentiment 07:00 Aug P 72.00 - 72.50 -
                   
 
 
 
 
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