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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   108-09 (+11.5)  
 
  FN 3.5% Coupon   105-12 (+01.5)  
 
  Support   2.541%  
 
  Resistance   0.547%  
 
 
 
 
  Tuesday, April 28, 2020
 
 

Treasury Yields Fall as Stocks Jump on Reopening Effort

 
 
Market opened today’s session with treasuries advancing across all maturities. 10-Year Treasury yield is at 0.6255, 3.50 bps decreased from prior closing of 0.6605.

US Stocks extended gain this morning as investors remained optimistic about the prospect of economies reopening. A partial reopening of the economy in Alaska, Georgia, South Carolina, Tennessee, Texas, and others had earlier boosted investor sentiment. As Chinese scientists are warning that the virus may return in waves like the flu, the White House issued a strategy to expand testing in cooperation with retailers including Walmart and CVS with President Trump saying he is confident there is enough testing to begin “the reopening process”. In corporate news, Caterpillar rose in the premarket after shelving its traditional forecast for the rest of the year and UBS gained after posting a jump in profit. Pepsi also had its earnings per share beat estimates and Alphabet is among the companies which will report their earnings later today. Treasuries edged higher and the dollar weakened against its major peers. Elsewhere, oil continued to remain under pressure over limited storage capacity with WTI crude trading below $13 a barrel this morning. In the economic calendar, Wholesale Inventories came in below consensus of -0.40% at -1.00% and Conference Board Consumer Confidence in April also plunged to 86.90 from a downwardly revised prior of 118.80. Lastly, Richmond Fed Manufacturing Index in April fell sharply to -53 from a prior reading of 2.

The curve has bull-flattened with UST 10-Year yield down 3.50 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/27 Dallas Fed Manf. Activity 07:30 Apr -75.00 -73.70 -70.00 -  
                   
  04/28 Wholesale Inventories MoM 05:30 Mar P -0.40% -1.00% -0.70% -0.60%  
                   
  04/28 S&P CoreLogic CS 20-City MoM SA 06:00 Feb 0.35% 0.45% 0.30% 0.35%  
                   
  04/28 S&P CoreLogic CS 20-City YoY NSA 06:00 Feb 3.19% 3.47% 3.08% 3.12%  
                   
  04/28 Richmond Fed Manufact. Index 07:00 Apr -41 -53 2 -  
                   
  04/29 MBA Mortgage Applications 04:00 24 Apr - - -0.30% -  
                   
  04/29 GDP Annualized QoQ 05:30 1Q A -3.90% - 2.10% -  
                   
  04/29 Personal Consumption 05:30 1Q A -3.50% - 1.80% -  
                   
  04/29 GDP Price Index 05:30 1Q A 1.00% - 1.30% -  
                   
  04/29 Core PCE QoQ 05:30 1Q A 1.70% - 1.30% -  
                   
  04/29 FOMC Rate Decision (Upper Bound) 11:00 29 Apr 0.25% - - -  
                   
  04/29 FOMC Rate Decision (Lower Bound) 11:00 29 Apr 0.00% - - -  
                   
  04/30 Initial Jobless Claims 05:30 25 Apr 3500k - 4427k -  
                   
  04/30 Continuing Claims 05:30 18 Apr 19238k - 15976k -  
                   
  04/30 PCE Core Deflator MoM 05:30 Mar -0.10% - 0.20% -  
                   
  04/30 Personal Income 05:30 Mar -1.50% - 0.60% -  
                   
  04/30 Personal Spending 05:30 Mar -5.00% - 0.20% -  
                   
  04/30 PCE Deflator MoM 05:30 Mar -0.30% - 0.10% -  
                   
  04/30 PCE Deflator YoY 05:30 Mar 1.30% - 1.80% -  
                   
  05/01 Markit US Manufacturing PMI 06:45 Apr F 36.70 - 36.90 -
                   
 
 
 
 
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