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Today's Coupons
 
  10-Year Notes   100-4.5 (+05)  
 
  FN 3.5% Coupon   102-24 (+01)  
 
  Support   3.069%  
 
  Resistance   1.668%  
 
 
 
 
  Tuesday, November 26, 2019
 
 

Treasury Yields Decline as Stocks Remain Muted

 
 
Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 1.7345, 2.06 bps decreased from prior closing of 1.7551.

US equities opened little changed and Treasuries slightly rose as investors digested gains in stocks from the previous session and searched for signs of further progress in a potential phase-one trade deal. Chinese Ministry of Commerce released a statement saying that Chinese and U.S. top trade negotiators reached consensus on resolving certain issues that have been holding up the partial deal in a phone call. President Trump will have to decide whether to carry out his plan for higher tariffs if they fail to reach an agreement by December 15th. Market swung between gains and losses on the news as investors remain skeptical on this prolonged tussle between the two nations. Last night, Fed Chair Powell sent an upbeat signal on the economic outlook as he mentioned that he saw “the glass as much more than half full”. He also reiterated that the rates are not on a preset course and the Fed will take an appropriate action if there was a material change to its outlook. Elsewhere, WTI crude edged higher this morning, trading above $58 a barrel.

Wholesale Inventories came in line with consensus of 0.20%, a 0.90% increase from the revised prior reading of -0.70%. Housing sector showed improvements in September and October. FHFA House Price Index in September beat the consensus of 0.30% at 0.60%, a 0.40% increase from a prior data of 0.20%, and New Home Sales in October also topped consensus of 705k at 733k. Its prior reading was revised to 738k from 701k. However, Richmond Fed Manufacturing Index in November declined to -1.00 from 8.00 prior and Conference Board Consumer Confidence in November also dipped to 125.50 from a revised prior of 126.10 vs. 127.00 consensus. Later today, the US Treasury is scheduled to auction off $18 billion of 2-year FRNs reopening at 8:30 AM (PT), and $41 billion of 5-year notes at 10:00 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 2.06 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  11/25 Chicago Fed Nat Activity Index 05:30 Oct -0.20 -0.71 -0.45 -  
                   
  11/25 Dallas Fed ManfActivity 07:30 Nov -3.80 -1.30 -5.10 -  
                   
  11/26 Wholesale Inventories MoM 05:30 Oct P 0.20% 0.20% -0.40% -0.70%  
                   
  11/26 FHFA House Price Index MoM 06:00 Sep 0.30% 0.60% 0.20% -  
                   
  11/26 S&P CoreLogic CS 20-City MoM SA 06:00 Sep 0.30% 0.36% -0.16% 0.15%  
                   
  11/26 S&P CoreLogic CS 20-City YoY NSA 06:00 Sep 2.01% 2.10% 2.03% 2.02%  
                   
  11/26 Richmond Fed Manufact. Index 07:00 Nov 5.00 -1.00 8.00 -  
                   
  11/27 MBA Mortgage Applications 04:00 22 Nov - - -2.20% -  
                   
  11/27 GDP Annualized QoQ 05:30 3Q S 1.90% - 1.90% -  
                   
  11/27 Personal Consumption 05:30 3Q S 2.80% - 2.90% -  
                   
  11/27 GDP Price Index 05:30 3Q S 1.70% - 1.70% -  
                   
  11/27 Core PCE QoQ 05:30 3Q S 2.20% - 2.20% -  
                   
  11/27 Durable Goods Orders 05:30 Oct P -0.90% - -1.20% -  
                   
  11/27 Durables Ex Transportation 05:30 Oct P 0.10% - -0.40% -  
                   
  11/27 Initial Jobless Claims 05:30 23 Nov 221k - 227k -  
                   
  11/27 Continuing Claims 05:30 16 Nov 1691k - 1695k -  
                   
  11/27 Bloomberg Consumer Comfort 06:45 24 Nov - - 59.10 -  
                   
  11/27 Personal Income 07:00 Oct 0.30% - 0.30% -  
                   
  11/27 Personal Spending 07:00 Oct 0.30% - 0.20% -  
                   
  11/27 PCE Deflator MoM 07:00 Oct 0.30% - 0.00% -  
                   
  11/27 PCE Deflator YoY 07:00 Oct 1.40% - 1.30% -  
                   
  11/27 U.S. Federal Reserve Releases Beige Book 11:00 - - - - -  
                   
  11/28 No Data - - - - - -  
                   
  11/29 No Data - - - - - -
                   
 
 
 
 
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