Morning Market Update: September 25, 2020

Yields Rally as Equities Increase in Choppy Trading Day 

Commentary for Thursday: Treasury's mostly rallied as equities gained slightly in another choppy trading day. Yields moved slightly lower in overnight and early morning trading. Yields moved mostly sideways throughout the day as investors weighed persistently high jobless numbers and mostly dovish remarks from various fed presidents. Yields ended slightly lower.

This Morning: Treasury yields are falling this morning pending the release of economic data on Durable Goods Orders.

New home sales increased by 4.8% to 1 million sales annualized in the month of August; a faster than expected rate and higher than the 965K annual pace reported in July. August marked the 4th straight month of increases and the 1 million annualized pace is the fastest pace since late 2006 spurred on by near record low mortgage rates.

Initial Jobless claims unexpectedly rose last week reporting 870K initial claims; worse than last weeks revised total of 866K and worse than the projected decline to 840K as claims remain stubbornly high.

Fed chair Powel indicated that aid to small businesses and the unemployed should be prioritized in any additional fiscal spending. He also said lack of additional aid would constitute a "downside risk for the economy." In contrast St. Louis Fed President Bullard said the U.S. economy could surge 35% annualized and "may put the U.S. economy within reach of a sort of 'full recovery' by the end of 2020".

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The morning market update is provided by: 

solutionsheadshots_hotchkiss_smJames Hotchkiss
Director, Member Strategy and Solutions








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