Treasury Closing Summary: Treasury Closing Summary: longer dated yields drifted lower Wednesday as the correction on equities gathered steam following an earnings miss from Apple after the close Tuesday, and deep losses posted by Microsoft, among others. Though bid, the bond market was relatively subdued. Some bottom fishing kicked in on stocks after opening losses and limited Treasury gains, as did a big debt offering from Intel. Existing home sales and FHFA home prices both rose handily, but merely helped provide a cushion after opening declines.
U.S. Initial Jobless Claims Preview U.S. Initial Jobless Claims Preview: Jobless claims for the week of July 18th are out Thursday and should edge up to 283k (median 281k) from 281k in the week prior. Claims during July can be volatile as a result of the auto retooling season but analysts expect balanced risk to this volatility for the duration of the month as analysts discussed in our June 30th commentary.
Crude inventories for week of July 17 Crude oil inventories 2.47M build vs. consensus of 2.2M draw. Gasoline inventories 1.73M draw vs. consensus of 300K build. Distillates 235K build vs. consensus of 1.8M build.
Treasury Action: yields rebounded from lows Treasury Action: yields rebounded from lows with a little bottom-fishing on Apple and tech stocks, combined with the uptick on existing home sales. The T-note yield tested the 2.31% July 50% retrace area earlier and then recovered above 2.32%. The 2s-10s spread steadied at +163 bp after narrowing inside that area, compared to +169 bp Tuesday wides.