Morning Market Update: September 29, 2020
Yields Steepen While Equities Gain in Risk-On Trading Day
Commentary for Monday: Treasuries bull steepened while equities gained in a risk-on trading day. Yields were up in overnight trading but dipped in the morning despite better-than-expected data on manufacturing. The long end traded within a tight bound above the prior day's close through the rest of day as equity markets gained modestly. Yields ended down 1 basis point on the short end but up a basis point on the long end of the curve.
This Morning: Yields are mixed pending the economic data results of the S&P Case Shiller Home Price Index.
The Dallas Fed Manufacturing Index rose to a better-than-expected 13.6 points vs. consensus estimates of 9.5 in September. This was an improvement over August's index of 8 points. Weighing on the components, the forecast range moved from 8 to 15, while the six-month outlook improved to 28 vs. 20.4 the prior month.
The morning market update is provided by:
Director, Member Strategy and Solutions