Token Support in Bonds After Oil Drops Overnight
Token Support in Bonds After Oil Drops Overnight
It's a straightforward morning in the bond market. We're not seeing any of the sorts of "unseen hand" trading that accounted for the timing of yesterday's pre-market weakness. We simply have oil prices erasing about half of yesterday's rise. Bond yields are trying their best to be able to say the same, but they're not recovering quite as much as oil. It doesn't much matter. If anything, it's reassuring to see the correlation persist as it underpins the expectation that bonds are at least capable of a better recovery if oil moves back down to/toward June's levels. Econ data is very light. Volatility potential is down to any juicy news headlines or pre-weekend positioning.
Bonds Not Keen to Catch Falling Knives
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Friday, Jul 24 | |||||
| 8:00AM | Jun Building Permits (ml) | Jun | 1.374M | 1.367M | 1.41M |
| 9:45AM | Jul S&P Global Services PMI | Jul | 53.6 | 51.5 | 51.2 |
| 9:45AM | Jul S&P Global Manuf. PMI | Jul | 53.8 | 54.3 | 53.9 |
| 9:45AM | Jul S&P Global Composite PMI | Jul | 53.6 | 51.9 | |
| 10:00AM | Jun New Home Sales (%) (%) | Jun | 1.6% | -7.3% | |
| 10:00AM | Jun New Home Sales (ml) | Jun | 0.628M | 0.61M | 0.58M |
| Monday, Jul 27 | |||||
| 8:30AM | Jun Durable goods (%) | Jun | 1.6% | -4.5% | |
| 8:30AM | Jun Core CapEx (%) | Jun | 1.6% | ||
| 11:30AM | 2-Yr Note Auction (bl) | 69 | |||
| 1:00PM | 5-Yr Note Auction (bl) | 70 | |||
