July 28, 2021 Headlines

July 28, 2021 Headlines Risk markets are recovering some of yesterday’s losses in relatively quiet trading ahead of the FOMC later today. Treasury yields are 2-3 bps higher out the curve, and U.S. equity futures are flat to slightly higher following mixed earnings...

July 27, 2021 Headlines

July 27, 2021 Headlines A growing selloff in Chinese equities leaked into U.S. markets overnight, pushing long-end Treasury yields 4 basis points lower from yesterday’s close. Hong Kong’s Hang Seng stock index fell more than 4% as rumors swirl that that U.S. could...

July 26, 2021 Headlines

July 26, 2021 Headlines A modest risk-off tone developed overnight on reports of fresh crackdowns on private industry by the Chinese government, this time focused on private education. Treasury yields are slightly lower and flatter, and equity futures are pointing to...

July 23, 2021 Headlines

July 23, 2021 Headlines Strong earnings reports are bolstering equity futures this morning ahead of the open, and the improved risk tone and anticipation of new supply next week is driving Treasury yields slightly higher/steeper. Beyond new Treasury supply, market...

July 22, 2021 Headlines

July 22, 2021 Headlines Equity and bond prices are both higher this morning following a relatively quiet overnight session with Tokyo closed. Futures on both the Dow Jones and S&P 500 are up 0.13% on the back of rosy earnings expectations. Treasuries held steady...

July 21, 2021 Headlines

July 21, 2021 Headlines A modest risk-on tone persisted overnight following yesterday’s rebound in equity markets (S&P 500 +1.5%). The Treasury curve is bear steepening with long-end yields up 2-3 basis points ahead of today’s 20-year note auction. The MBA...

July 20, 2021 Headlines

July 20, 2021 Headlines News that Apple is postponing employees return to the office in October due to Covid risks added more fuel to the Treasury rally early this morning. Intermediate yields are 6 basis points (bps) lower from yesterday’s close, and the 10-year...

July 19, 2021 Headlines

July 19, 2021 Headlines Renewed Covid concerns sparked a risk-off trade overnight in global markets, sending Treasury yields lower and flatter to start the week. Long-end rates are now at the lowest levels since February. Major European equity indices are down...

July 16, 2021 Headlines

July 16, 2021 Headlines Treasury yields are up 2-4 bps across the curve this morning following a solid June retail sales report. Equity futures are up 22-38 bps ahead of the open, with tech leading the way amid the modest rate curve steepening. Retail sales rose 0.6%...

July 15, 2021 Headlines

July 15, 2021 Headlines The US Treasury curve continues to bull flatten with 10-year yields down 2bps this morning as Federal Reserve Chairman Powell reiterated the need for monetary support. During the virtual hearing, the chairman recognized improvement in the...

July 14, 2021 Headlines

July 14, 2021 Headlines Long-end Treasury yields are lower this morning, the 10-year is 3 bps lower; equities are mixed. Futures on the Dow and S&P are both up ahead of the open while the NASDAQ is in the red. PPI for June exceed expectations, coming in at an...

July 13, 2021 Headlines

July 13, 2021 Headlines The big news this morning is the surge in CPI last month, as prices jumped 0.9% in June and 5.4% year-over-year. Both measures surprised to the upside, with the consensus calling for a 0.5% bounce from the prior month, and 4.9% jump...

July 12, 2021 Headlines

July 12, 2021 Headlines It’s been a quite open to start the week. Rates are slightly lower across the curve while equity futures are lower ahead of start of Q2 earnings season. Later today the Treasury will auction $58 billion of 3-year notes, $38 billion of 10-year...

July 9, 2021 Headlines

July 9, 2021 Headlines Relief from this week’s Treasury rally emerged overnight, sending yields 1-4 bps higher from yesterday’s close. While “eased growth fears” seems to be a common headline today to explain the sell-off, it’s more likely profit taking and...

July 8, 2021 Headlines

July 8, 2021 Headlines The recent Treasury market rally garnered more momentum overnight on speculation that China might announce a rate cut in the coming months due to weakening economic data. The 10-year yield touched 1.25% in early trading hours, the lowest since...

July 7, 2021 Headlines

July 7, 2021 Headlines Long-end yields are lower again this morning with the 10-year down to 1.303%, its lowest level since February 19, ahead of the Fed minutes release. Investors will be parsing the release looking for clues as to how the central bank plans to...

July 6, 2021 Headlines

July 6, 2021 Headlines It’s a sleepy start to the week as market participants return from the long holiday weekend. Both Treasuries and equity futures are little changed to start the day, but oil prices are up to a 6-year high after OPEC+ failed to reach a supply...

July 2, 2021 Headlines

July 2, 2021 Headlines The nonfarm payroll report showed a 850,000 increase in June due to a strong recovery from hospitality and leisure industries.  Even though the report beat median expectations of 720,000 added jobs, US payrolls are still 6.76 million below...

July 1, 2021 Headlines

July 1, 2021 Headlines The third quarter is off to a quiet start for financial markets as we head into the long holiday weekend. Treasuries are little changed across the curve following light trading in the overnight session. The corporate bond market continues to...

June 30, 2021 Headlines

June 30, 2021 Headlines A combination of month-end rebalancing and delta variant concerns are pushing Treasury yields lower and flatter on the last trading day of the quarter. The latter is weighing on European equities, and U.S. futures are slightly lower as well....