Morning Market Update: August 7, 2020

Yields Dip as Equities Rise in Choppy Trading Day 

Commentary for Thursday: Treasurys rallied, as equities gained in a choppy trading day. Yields dropped in overnight trading following the release of European stock earnings. They continued downward through the morning, but jumped up following a better-than-expected initial jobless claims report. They dipped again mid-day, but rebounded back up near the prior day's close as hopes grew for a new virus stimulus bill. Yields ended the day down 1-2 basis points across the curve.             

This Morning: Yields remain mixed following the release of slightly better-than-expected economic data in the July Employment Report.

Initial Jobless Claims decreased to 1.1 million in the week ending August 1 vs. estimates of 1.4 million. The previous week was upwardly revised by 1K to 1,4 million. California, Florida, and New York have the highest number of claims at 244K, 91K, and 85K, respectively. Continuing Claims decreased 16.1 million vs. estimates of 17 million in the week ending July 25.


The morning market update is provided by: 

solutionsheadshots_hotchkiss_smJames Hotchkiss
Director, Member Strategy and Solutions


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