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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-27.5 (-17.5)  
 
  FN 3.5% Coupon   102-20.5 (-08.5)  
 
  Support   2.397%  
 
  Resistance   2.084%  
 
 
 
 
Friday, October 20, 2017
 
 
Treasuries are selling off and are modestly lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.384% after closing at 2.319% prior.

A push forward for President Trump’s U.S. tax reform triggered a sell-off in treasuries overnight and into the open after the U.S. Senate announced a budget resolution late Thursday evening for a significant step in the tax reform process. Moreover, the market’s volatility has also been supported by President Trump’s anticipated choice as the next Fed Chair. Trump is reportedly leaning towards Fed Governor Jerome Powell, although Stanford economist John Taylor is still considered a top candidate as well.

In economic news, we received the September Existing Home Sales data which came in above expectations at 5.39m versus 5.30m per consensus. Existing Home Sales MoM rose 0.70% after falling 1.70% prior. Later today at 11:00 AM (PT), Cleveland Fed President Mester will take part in a panel discussion on global regulatory structure. Then at 4:30 PM (PT), Fed Chairwoman Yellen will speak on Monetary Policy at the annual National Economists Club’s Herbert Stein Memorial Lecture.

The curve has bear-steepened with the UST 10-Year up 6.5 bps from prior closing.

Have A Nice Weekend!
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  10/16 Empire Manufacturing 05:30 Oct 20.40 30.20 24.40 -  
                   
  10/17 Import Price Index MoM 05:30 Sep 0.60% 0.70% 0.60% -  
                   
  10/17 Import Price Index YoY 05:30 Sep 2.60% 2.70% 2.10% -  
                   
  10/17 Export Price Index MoM 05:30 Sep 0.50% 0.80% 0.60% 0.70%  
                   
  10/17 Export Price Index YoY 05:30 Sep - 2.90% 2.30% 2.40%  
                   
  10/17 Industrial Production MoM 06:15 Sep 0.30% 0.30% -0.90% -0.70%  
                   
  10/17 Capacity Utilization 06:15 Sep 76.20% 76.00% 76.10% 75.80%  
                   
  10/17 NAHB Housing Market Index 07:00 Oct 64.00 68.00 64.00 -  
                   
  10/17 Total Net TIC Flows 13:00 Aug - $125.00b -$7.30b -  
                   
  10/17 Net Long-term TIC Flows 13:00 Aug - $67.20b $1.30b $1.20b  
                   
  10/18 MBA Mortgage Applications 04:00 13 Oct - 3.60% -2.10% -  
                   
  10/18 Housing Starts 05:30 Sep 1175k 1127k 1180k 1183k  
                   
  10/18 Housing Starts MoM 05:30 Sep -0.40% -4.70% -0.80% -0.20%  
                   
  10/18 Building Permits 05:30 Sep 1245k 1215k 1300k 1272k  
                   
  10/18 Building Permits MoM 05:30 Sep -2.10% -4.50% 5.70% 3.40%  
                   
  10/18 U.S. Federal Reserve Releases Beige Book 11:00 - - - - -  
                   
  10/19 Initial Jobless Claims 05:30 14 Oct 240k 222k 243k 244k  
                   
  10/19 Philadelphia Fed Business Outlook 05:30 Oct 22.00 27.90 23.80 -  
                   
  10/19 Continuing Claims 05:30 7 Oct 1890k 1888k 1889k 1904k  
                   
  10/19 Bloomberg Consumer Comfort 06:45 15 Oct - 51.10 49.50 -  
                   
  10/19 Leading Index 07:00 Sep 0.10% -0.20% 0.40% -  
                   
  10/20 Existing Home Sales 07:00 Sep 5.30m 5.39m 5.35m -  
                   
  10/20 Existing Home Sales MoM 07:00 Sep -0.90% 0.70% -1.70% -  
                   
 
 
 
 
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