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Today's Coupons
 
  10-Year Notes   98-04 (+08.5)  
 
  FN 3.5% Coupon   102-17 (+04)  
 
  Support   3.237%  
 
  Resistance   1.529%  
 
 
 
 
  Wednesday, November 6, 2019
 
 

Treasury Yields Decline After Labor Department Report Shows Productivity Decline

 
 
Market opened today’s session with treasuries rallying across all maturities. The 10-Year Treasury yield is currently at 1.8318, 2.66 bps decreased from prior closing of 1.8584.

After hitting a record close yesterday, the Dow Jones fell almost 31 points this morning. The S&P 500 and NASDAQ showed little change at the open but dropped 0.10% and 0.30%, respectively. The Stoxx Europe 600 Index and the UK’s FTSE 100 Index both showed little change as well. The US is still reviewing Chinas request to have tariffs removed on $125 billion worth of Chinese goods; China has suggested that they would like this done before signing "phase one" of the trade deal. A Location for the signing ceremony is still pending to be announced, but the signing should take place later this month. The yield on 10-Year Treasuries and 2-Year Treasuries fell three basis points to 1.82% and two basis points to 1.60%, respectively. Britain’s 10-Year yield decreased four basis points to 0.737%. Germany’s 10-Year yield dipped two basis points to -0.33%. The US Treasury will offer $27 billion at its monthly auction of 10-Year noted, an increase of $3 billion from the last offering.

West Texas Intermediate crude oil gained 0.10% to $57.25 a barrel and gold rose 0.20% to $1,487.51 an ounce. According to the Labor Department, non-farm business employee output per hour showed a decrease of about 0.30%, while labor costs rose 3.60%. The Labor Department reported that productivity in the US declined for the first time in almost four years. Labor productivity declined in the factory sector by 0.10%. Mortgage applications declined 0.10% last week after rising 0.60% the previous week. Purchases were down 2.50% from the previous week, but still 7.00% higher than 1 year ago. Meanwhile, refinance applications actually showed an increase of 1.80% after being down the previous week. Refinance applications are now 144% higher than they were 1 year ago due to rates being so much lower than they were this time last year.

The curve has bull-flattened with the UST 10-Year yield down 2.66 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  11/04 Factory Orders 07:00 Sep -0.50% -0.60% -0.10% -  
                   
  11/04 Durable Goods Orders 07:00 Sep F -1.10% -1.20% -1.10% -  
                   
  11/04 Durables Ex Transportation 07:00 Sep F -0.30% -0.40% -0.30% -  
                   
  11/05 Trade Balance 05:30 Sep -52.40b -52.50b -54.90b -55.00b  
                   
  11/05 Markit US Services PMI 06:45 Oct F 51.00 50.60 51.00 -  
                   
  11/05 Markit US Composite PMI 07:00 Oct F - 50.90 51.20 -  
                   
  11/05 JOLTS Job Openings 07:00 Sep 7063 7024 7051 7301  
                   
  11/06 MBA Mortgage Applications 04:00 1 Nov - -0.10% 0.60% -  
                   
  11/06 Nonfarm Productivity 05:30 3Q P 0.90% -0.30% 2.30% 2.50%  
                   
  11/06 Unit Labor Costs 05:30 3Q P 2.20% 3.60% 2.60% 2.40%  
                   
  11/07 Initial Jobless Claims 05:30 2 Nov 215k - 218k -  
                   
  11/07 Continuing Claims 05:30 26 Oct 1682k - 1690k -  
                   
  11/07 Bloomberg Consumer Comfort 06:45 3 Nov - - 61.00 -  
                   
  11/07 Consumer Credit 12:00 Sep $15.000b - $17.901b -  
                   
  11/08 Wholesale Inventories MoM 07:00 Sep F -0.30% - -0.30% -  
                   
  11/08 Wholesale Trade Sales MoM 07:00 Sep 0.20% - 0.00% -  
                   
  11/08 U. of Mich. Sentiment 07:00 Nov P 95.50 - 95.50 -
                   
 
 
 
 
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