Morning Market Update: December 6, 2019


Yields Inch Higher Across the Curve as Equities Remain Flat

Commentary for Thursday: Treasurys sold-off slightly while equities were mostly unchanged. Yields were stable in overnight trading but jumped in the morning following better-than-expected economic data. They fell slightly in the late morning following treasury auctions. Yields ended the day up 1-3 basis-points across the curve.

This Morning: Yields are shifting 2-5 basis points higher across the curve following the release of a significantly better than expected non-farm payrolls report.  

Initial jobless claims decreased by 10K to 213K in the week ending November 30. The previous week’s level was unrevised. As a result, the 4-week moving average fell slightly by 2K to 217.75K. Elsewhere in the report, the insured unemployment rate rose to 1.2%.

Durable goods orders fell to a lower-than-expected 0.5% in October, which was 0.1% lower than last month's readings and consensus estimates. Weak data in construction materials contributed to the decline falling from -0.6% to 0.7%. Electrical equipment offset some of the decline, growing 0.6% from 0.4% the month prior. Factory Orders improved from -0.6% to 0.3% growth month-over-month in line with consensus estimates.

Financial Markets Research


The morning market update is provided by: 

solutionsheadshots_hotchkiss_smJames Hotchkiss
Director, Member Strategy and Solutions

SolutionsHeadshots_Deven_smMelissa Deven
Director, Member Strategy and Solutions


The data and valuations provided in this document are for information purposes only and are provided as an accommodation and without charge. The Federal Home Loan Bank of Chicago makes no representations or warranties about the accuracy or suitability of any information in this document. This document is not intended to constitute legal, investment, or financial advice or the rendering of legal, consulting, or other professional services of any kind.

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