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Today's Coupons
 
  10-Year Notes   99-16.5 (-06.5)  
 
  FN 3.5% Coupon   102-18.5 (-02.5)  
 
  Support   2.914%  
 
  Resistance   1.716%  
 
 
 
 
  Thursday, December 5, 2019
 
 

Treasury Yields Increase After Release of Jobs Data

 
 
Market opened today’s session with treasuries lower across all maturities. The 10-Year Treasury yield is currently at 1.8120, 3.8 bps increased from prior closing of 1.7740.

US stocks showed slight gains this morning due to a drop in jobless claims. The Dow Jones advanced approximately 0.2% and the S&P 500 and Nasdaq Composite both increased 0.1%. The US and China continue to remain in contact regarding finalizing the interim trade deal, however there is no confirmation from either country as to when the deal will be signed. If the two countries do not reach an agreement in the next 10 days, additional US tariffs on $156 billion worth of Chinese goods take effect. The US Treasury will offer $40 billion at its weekly auction of four-week bills, which is a $5 billion decrease from the last offering. The US Treasury will also offer $35 billion at its weekly auction of eight-week bills. The yield on 10-year Treasuries advanced two basis points to 1.79%. The yield on 2-year Treasuries gained one basis point to 1.58%. Germanys 10-year yield climbed two basis points to -0.30%. West Texas Intermediate crude oil increased 0.6% to $58.79 a barrel.

The US Department of Labor reported jobless claims fell to 203,000 and the insured jobless rate was 1.20% last week. State claims showed 40 states and territories with increased claims and 13 states reported lower unemployment filings. California and Pennsylvania were among the states that showed the highest increase in claims; Claims in California and Pennsylvania increased by 8,384 and 5,064, respectively. Meanwhile, Illinois and Ohio showed the largest decrease in claims with levels reported at -2,723 and -871, respectively. As a result of prolonged trade negotiations, the Commerce Department reported that imports and exports between the two countries fell to a new seven month low. Imports from China decreased approximately 4.8% to $35.3 billion, and exports to China plunged 17% to $7.49 billion.

The curve has bear-steepened with the UST 10-Year yield up 3.8 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  12/02 Markit US Manufacturing PMI 06:45 Nov F 52.20 52.60 52.20 -  
                   
  12/02 ISM Manufacturing 07:00 Nov 49.20 48.10 48.30 -  
                   
  12/02 ISM Prices Paid 07:00 Nov 47.00 46.70 45.50 -  
                   
  12/02 Construction Spending MoM 07:00 Oct 0.40% -0.80% 0.50% -0.30%  
                   
  12/03 No Data - - - - - -  
                   
  12/04 MBA Mortgage Applications 04:00 29 Nov - -9.20% 1.50% -  
                   
  12/04 ADP Employment Change 05:15 Nov 135K 67K 125K 121K  
                   
  12/04 Markit US Services PMI 06:45 Nov F 51.60 51.60 51.60 -  
                   
  12/04 Markit US Composite PMI 06:45 Nov F - 52.00 51.90 -  
                   
  12/05 Initial Jobless Claims 05:30 30 Nov 215K 203K 213K -  
                   
  12/05 Continuing Claims 05:30 23 Nov 1660K 1693K 1640K 1642K  
                   
  12/05 Trade Balance 05:30 Oct -$48.50b -$47.20b -$52.50b -$51.10b  
                   
  12/05 Bloomberg Consumer Comfort 06:45 1 Dec - 61.70 60.50 -  
                   
  12/05 Factory Orders 07:00 Oct 0.30% 0.30% -0.60% -0.80%  
                   
  12/05 Durable Goods Orders 07:00 Oct F 0.60% 0.50% 0.60% -  
                   
  12/05 Durables Ex Transportation 07:00 Oct F 0.60% 0.50% 0.60% -  
                   
  12/06 Change in Nonfarm Payrolls 05:30 Nov 185K - 128K -  
                   
  12/06 Average Hourly Earnings MoM 05:30 Nov 0.30% - 0.20% -  
                   
  12/06 Average Hourly Earnings YoY 05:30 Nov 3.00% - 3.00% -  
                   
  12/06 Wholesale Inventories MoM 07:00 Oct F 0.20% - 0.20% -  
                   
  12/06 Wholesale Trade Sales MoM 07:00 Oct - - 0.00% -  
                   
  12/06 U. of Mich. Sentiment 07:00 Dec P 97.00 - 96.80 -
                   
 
 
 
 
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