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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.561%  
  Support   1.576%  
  Resistance   1.297%  
  FN 2.5% Coupon   102.609 (+0.125)  
     Wednesday, October 27, 2021

Earning Season Luster Fades, Bitcoin Plunges


The Market opened today's session with treasuries higher across all maturities. The 10-year Treasury yield is currently at 1.5781, 2.98 bps lower than prior closing of 1.6079.

A mixed collection of earnings numbers and a drop in commodity prices have spurred a pause to the global equity rally. S&P 500 contracts and Nasdaq 100 futures bounced between gains and losses going to start of regular trading with the S&P 500 unchanged and NASDAQ 100 rising by a meagre 0.10%. The Stoxx Europe 600 fell 0.30% as the mining and energy stocks led a retreat in the index as prices of raw materials including aluminum and iron ore fell along with crude oil. The crude fell 1.30% to $83.57 a barrel. The generally positive market reaction to bank earnings came to a halt this morning with Deutsche Bank AG dropping more than 5.00% after reporting a drop in investment-banking revenue. The debt crisis in China’s property sector continues to hang over the market. Bitcoin slid below $60,000 as euphoria over the first U.S. crypto ETF dissipated and traders took profits following a record-breaking rally. The U.S. merchandise-trade deficit widened to a fresh record this month as exports retreated for the first time in seven months. The gap increased to $96.30 billion last month from a revised $88.20 billion from the month before. The value of imports rose 0.50% to $238.40 billion, spurred by a 3.60% increase in the value of capital-goods shipments. The Commerce Department’s report also showed U.S. wholesale inventories climbed 1.10%, while retail inventories retreated 0.20%. Workers Press for Power in Rare Advance for U.S. Labor Movement.

The curve has bull-flattened with the UST 10-Year yield down 2.98 bps.

This Week's Events
  10/25 Chicago Fed Nat Activity Index 05:30 Sep 0.20 -0.13 0.29 0.05  
  10/26 FHFA House Price Index MoM 06:00 Aug 1.50% 1.00% 1.40% -  
  10/26 S&P CoreLogic CS 20-City MoM SA 06:00 Aug 1.50% 1.17% 1.55% 1.53%  
  10/27 MBA Mortgage Applications 04:00 22-Oct - 0.30% -6.30% -  
  10/27 Wholesale Inventories MoM 05:30 Sep P 1.00% 1.10% 1.20% -  
  10/28 Initial Jobless Claims 05:30 23-Oct 289k - 290k -  
  10/28 Continuing Claims 05:30 16-Oct 2420k - 2481k -  
  10/29 PCE Deflator MoM 05:30 Sep 0.30% - 0.40% -  
  10/29 PCE Deflator YoY 05:30 Sep 4.40% - 4.30% -  
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