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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-12.5 (-15)  
 
  FN 3.5% Coupon   102-25 (-02)  
 
  Support   2.784%  
 
  Resistance   1.697%  
 
 
 
 
Monday, December 30, 2019
 
 
Treasury Yields Climb as Stocks decline
 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 1.9191, 4.39 bps increased from prior closing of 1.8752.

US stock index futures drifted this morning, the penultimate session of a record breaking year for many stock markets. Treasuries fell along with the dollar. The S&P 500 is within reach of having its best year since 1997, sitting less than half percentage below. Investor sentiment continued to get boosted by easing tensions over US-China trade dispute with the anticipated signing of an interim trade deal in January. Chinese Vice Premier Liu He is reportedly scheduled to visit Washington this week to sign the agreement as well. Also, majority of market participants seem to stay hopeful about the manufacturing cycle and the economy in general in the first half of 2020 as worries of economic recession have certainly dissipated. Elsewhere, WTI crude nudged higher this morning, trading slightly above $62 a barrel. In the economic calendar, Wholesale Inventories came in below consensus of 0.20% at 0.00%, the same reading from downwardly revised prior of 0.00%. MNI Chicago PMI in December climbed to 48.90 from 46.30 prior vs. 47.90 consensus. Lastly, Pending Home Sales in November surged to 1.20% from upwardly revised prior of -1.30%. Later today, the US Treasury is scheduled to auction off $42 billion of 13-week bills and $36 billion of 26-week bills at 8:30 AM (PT), and $26 billion of 52-week bills at 10:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 4.39 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  12/30 Wholesale Inventories MoM 05:30 Nov P 0.20% 0.00% 0.10% 0.00%  
                   
  12/30 Pending Home Sales MoM 07:00 Nov 1.40% 1.20% -1.70% -1.30%  
                   
  12/30 Pending Home Sales NSA YoY 07:00 Nov 7.40% 5.60% 3.90% 4.40%  
                   
  12/30 Dallas Fed ManfActivity 07:30 Dec 0.00 - -1.30 -  
                   
  12/31 FHFA House Price Index MoM 06:00 Oct 0.40% - 0.60% -  
                   
  12/31 S&P CoreLogic CS 20-City MoM SA 06:00 Oct 0.30% - 0.36% -  
                   
  12/31 S&P CoreLogic CS 20-City YoY NSA 06:00 Oct 2.10% - 2.10% -  
                   
  01/01 No Data - - - - - -  
                   
  01/02 Initial Jobless Claims 05:30 28 Dec 220k - 222k -  
                   
  01/02 Continuing Claims 05:30 21 Dec - - 1719k -  
                   
  01/02 Bloomberg Consumer Comfort 06:45 29 Dec - - 62.30 -  
                   
  01/02 Markit US Manufacturing PMI 06:45 Dec F 52.50 - 52.50 -  
                   
  01/03 Construction Spending MoM 07:00 Nov 0.40% - -0.80% -  
                   
  01/03 ISM Manufacturing 07:00 Dec 49.00 - 48.10 -  
                   
  01/03 ISM Prices Paid 07:00 Dec 47.50 - 46.70 -  
                   
  01/03 FOMC Meeting Minutes 11:00 11 Dec - - - -
                   
 
 
 
 
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