Weekly Market Update

Treasuries Recoup Some of Yesterday’s Losses Much of the increase in yields following yesterday’s disappointing 30yr auction is being reversed this morning as traders reassess and perhaps breathe a sigh of relief that at least the new supply has been put away, albeit with some difficulty. 30yr auctions have typically struggled and the earlier 3yr…

Investors Await More Treasury Supply and Fed Speak Treasury prices are higher in early trading as investors await more Fed Speak and the 10yr Treasury auction results this afternoon. While the moves are tentative so far, it’s interesting that much of the sharp rally from last week continues to hold, even with additional supply coming…

Treasuries Trading Heavy into a Trio of Auctions This Week Treasury prices are opening the week lower and given the robust rally in prices last week it’s not surprising that some give back is in play. Also working against higher prices are a trio of coupon auctions this week which should keep any rally attempt…

October Jobs Report – Weaker Than Expected Nonfarm payroll gains came in weaker than expected with 150 thousand new jobs vs. 180 thousand expected, plus the prior two months were revised lower by 101 thousand jobs. Revisions had been trending to the downside this year until September, but that appears to be the anomaly as…

Fed Delivers a Dovish Pause – References Tighter Financial Conditions As widely expected, the Fed kept the funds rate unchanged a 5.25% – 5.50%. Also, the statement was largely unchanged from September except for characterizing economic activity as “strong” vs. “solid”. The statement also added a mention to tightened financial conditions, recognizing the increase in…

Investors Await Expected Fed Pause Treasury prices are higher this morning as investors await the Fed’s rate decision and Powell press conference at 2pm ET. With a pause expected Treasury prices are also being aided by the Treasury’s auction size announcement this morning came in slightly less than anticipated (more on that below). Presently, the…