Today’s Market Update

Treasuries Steady With Stocks Elevated; 10-Year Around 200-DMA
2020-10-23

By Edward Bolingbroke
(Bloomberg) — Treasuries steady, with yields little changed from Thursday’s closing levels despite gains in European stocks feeding through to higher S&P 500 futures. Bonds firmed slightly after Thursday night’s final presidential debate, but follow-through was limited with stocks elevated.
* Yields are cheaper by less than 1bp across the curve, 10-year yields ~0.86%, testing 200-DMA with curve spreads little changed
** Gilts lag by 1.5bp vs Treasuries, bunds trade broadly in line; Italian bonds outperform by 4bp after large buying in screens and a 5,120 10-year BTP futures block trade
** Euro Stoxx 50 higher by 1.3%, S&P 500 E-mini futures 0.3%
* Treasuries were underpinned during the presidential debate, while election odds trackers showed only minimal changes, suggesting no deep shift in probabilities
* Yields are higher on the week with the curve steeper after 5- to 30-year reached highest levels since June on Thursday, propelled mainly by expectations for fiscal stimulus after the Nov. 3 election; 10-year is higher by more than 11bp, biggest weekly increase since August
* 3-month dollar Libor +0.18bp at 0.21650%
* IG credit issuance slate empty
* U.S. economic data slate includes initial preliminary October Markit PMIs at 9:45am
* Fed speakers include Logan at 9:05am, discussing market liquidity

To contact the reporter on this story:
Edward Bolingbroke in New York at ebolingbrok1@bloomberg.net
To contact the editors responsible for this story:
Benjamin Purvis at bpurvis@bloomberg.net
Elizabeth Stanton

Treasury Yields

Term  Current  Last Month
3 Month0.089%0.089%
6 Month0.109%0.099%
2 Year0.151%0.139%
5 Year0.375%0.271%
10 Year0.856%0.672%
30 Year1.675%1.417%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME3.25%
DJIA28,417.17
Crude Oil (WTI)$40.71
YEN104.7800
Gold$1,907.29
1 Year CMT0.12%
1 Month LIBOR0.1479%
Fed Funds Effective0.08%
Next FOMC MeetingNovember 4-5th, 2020
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurv (M)ActualPriorRevised
10/19NAHB Housing Market IndexOct838583
10/20Housing StartsSep1,465k1,415k1,416k1,388k
Housing Starts MoMSep3.5%1.9%-5.1%-6.7%
Building PermitsSep1,520k1,553k1,470k1,476k
Building Permits MoMSep3.0%5.2%-0.9%-0.5%
10/21MBA Mortgage ApplicationsOct 16-0.6%-0.7%
US Federal Reserve Beige Book
10/22Initial Jobless ClaimsOct 17870k787k898k842k
Continuing ClaimsOct 109,750k8,373k10,018k9,397k
Bloomberg Economic ExpectationsOct43.041.5
Bloomberg Consumer ComfortOct 1846.648.2
Leading IndexSep0.6%0.7%1.2%1.4%
Existing Home SalesSep6.30m6.54m6.00m5.98m
Existing Home Sales MoMSep5.0%9.4%2.4%2.0%
Kansas City Fed Manf. ActivityOct111311
10/23Markit US Manufacturing PMIOct P53.553.353.2
Markit US Services PMIOct P54.656.054.6
Markit US CompositPMIOct P55.554.3
Source: Bloomberg