Volume in the overnight cash Treasury market was noticeably light as Japanese markets were closed due to a holiday. China-US tensions flared up yesterday after the abrupt closure of a Chinese consulate in Houston. However, yields traded a narrow range with China’s retaliatory response more muted than originally feared. This morning, the focus has shifted to the initial jobless claims report that showed 1.42 million file for unemployment the week of July 18th which is the first increase since the initial pandemic surge. Continuous claims or those that filed for ongoing benefits decreased to 16.2 million below the survey expectations of 17 million. At the open, the 10-year US Treasury yield is .58% and the S&P 500 declined to 3272.
Chris Eckhoff
Associate, Investment Management Group
To view ALM First’s full daily market commentary, please click here.