May 13, 2021 Headlines

May 13, 2021 Headlines Yield buyers emerged overnight following yesterday’s CPI-driven sell-off in Treasuries. Equity markets are also looking to rebound from this week’s declines which have sent the S&P 500 down nearly 4% and NASDAQ down more than 5%. Yesterday’s...

May 12, 2021 Headlines

May 12, 2021 Headlines Inflation was higher than expected in April, hitting its highest level since 2009. This morning’s CPI release showed headline inflation up 0.8% last month versus 0.2% expected. Core CPI, excludes food and energy, was up 0.9% versus 0.3%...

May 11, 2021 Headlines

May 11, 2021 Headlines A global sell-off in technology stocks is being attributed to inflation worries this morning, sending NASDAQ futures down close to 2% ahead of the open. The risk-off tone has not impacted Treasuries so far, with yields slightly higher across the...

May 10, 2021 Headlines

May 10, 2021 Headlines U.S. equity futures and Treasuries are little changed to start the morning as market participants attempt to digest the impact of the Colonial pipeline hack. The critical fuel pipeline remains mostly shutdown from Friday’s cyber-attack, and as a...

May 7, 2021 Headlines

May 7, 2021 Headlines Long-end Treasury yields are much lower this morning following a weaker than expected jobs number. The 10-year fell 10 bps after April non-farm payrolls showed an increase of only 266,000. The 10-year has since retreated slightly and is currently...

May 6, 2021 Headlines

May 6, 2021 Headlines Initial jobless claims fell by 92,000 to 498,000 last week, 40,000 below the median forecast of 538,000. The labor market continues to improve as the economy opens. We get another look at employment with tomorrow’s non-farm payrolls release,...

May 5, 2021 Headlines

May 5, 2021 Headlines A mild risk-on tone is boosting equity futures this morning and contributing to slightly lower long-end Treasury yields. Treasury Secretary Janet Yellen made headlines yesterday when Bloomberg posted the news headline ‘Yellen Says Rates May Have...

May 4, 2021 Headlines

May 4, 2021 Headlines Weakness in U.S. and European equity markets is sparking a modest bid for Treasuries so far this morning. S&P 500 futures were down as much as 67 bps earlier this morning, and there doesn’t appear to be a clear catalyst for the softness at...

May 3, 2021 Headlines

May 3, 2021 Headlines Treasury yields are opening the week slightly higher following a quiet overnight session (London and Asian markets closed), and S&P 500 futures are up 53 bps ahead of the open. This week’s economic calendar is headlined by the April jobs...

April 30, 2021 Headlines

April 30, 2021 Headlines Rates are essentially unchanged this morning while the equity rally has stalled. Valuations continue to be a cause of heartburn in risk markets with the stock market at all time highs and spreads in fixed-income at or near all time tights;...

April 29, 2021 Headlines

April 29, 2021 Headlines Risk markets are off to a strong start today following another dovish FOMC meeting, strong tech earnings, and a strong Q1 GDP report.  U.S. equity futures are up 50-110 bps ahead of the open, and Treasury yields are 3-4 bps higher for...

April 27, 2021 Headlines

April 27, 2021 Headlines Financial markets are relatively calm this morning with Treasuries and equity futures little changed to start the day. A Financial Times article today reports that several U.S. companies plan to raise prices soon due to rising input costs....

April 26, 2021 Headlines

April 26, 2021 Headlines Treasury yields are drifting higher along the curve to start the week ahead of fresh supply this week (2yr, 5yr, and 7yr auctions) and a FOMC meeting on Wednesday. U.S. equity futures are little changed ahead of the open. March durable goods...

April 23, 2021 Headlines

April 23, 2021 Headlines Treasuries are essentially unchanged this morning. Futures on the S&P 500 and Nasdaq are up, rebounding from yesterday’s tax induced selloff. Bloomberg reported that President Biden is planning on raising capital gains taxes for those...

April 22, 2021 Headlines

April 22, 2021 Headlines Treasury prices are slightly lower this morning following a drop in jobless claims. The initial jobless claims number came in at 547,000 vs a median expectation of 610,000. Last week’s level is the lowest since the pandemic hit. Texas and New...

April 21, 2021 Headlines

April 21, 2021 Headlines The Treasury rally stalled out this morning with rates essentially unchanged from yesterday’s close. US equity markets are pointing to a lower open this morning as concerns over new rounds of lockdowns in countries like Japan where the...

April 20, 2021 Headlines

April 20, 2021 Headlines US Treasuries are unchanged overnight as a sudden drop in equities erased the initial move higher in yields. Virus cases continue to grow in developed countries such as Brazil and India which has caused the decline to center around the travel...

April 19, 2021 Headlines

April 19, 2021 Headlines Treasuries are little changed following a relatively quiet news cycle over the weekend, and U.S. equity futures are slightly lower amid general dollar weakness. The CDC reported yesterday that half of all American adults (130 million) have...

April 16, 2021 Headlines

April 16, 2021 Headlines Yesterday’s Treasury market rally continued in the overnight session, and market participants still aren’t very sure of what sparked yesterday’s curve flattening, particularly considering the strong economic data that was released. The most...

April 15, 2021 Headlines

April 15, 2021 Headlines Better demand from Asian investors overnight is pushing Treasury prices higher across the curve despite a positive tone in risk markets this morning. U.S. tensions with Russia is likely one contributor to the rally in Treasuries, as the White...