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Market Brief – Wednesday 6/17/20

Stocks started the day slightly higher and Treasury yields were flat as investors looked for a rebound in the housing market along with large crude oil draws. Despite being disappointed on both fronts, stocks were down slightly and Treasury yields were up slightly in early trading.

Mortgage applications rose +8.0% from last week as demand for purchase application rose +3.5% and refinance applications rose a whopping +10.3%.

Housing starts rose +4.3% in May and improved slightly to -23.2% from this time last year. Building permits rose +14.4% in May, indicating a huge rebound in permits, but only improved slightly to -8.8% from this time last year.

The Department of Energy reported crude oil inventories as Crude: +1.215mm (-152k expected), Cushing: -2.608mm (-183k expected), Gasoline: -1.667mm (-17k expected), and Distillates: -1.358mm (+2.429mm expected). Crude oil rose following the report.

Today’s $17 billion 20-year Treasury Bond auction was met with strong demand as foreign bidders took 61.6% of the auction and domestic bidders took 16.5% of the auction, leaving securities dealers with 21.9% of the offer. Yields fell following the auction.

Aside from the tech-heavy Nasdaq, stocks closed lower along with Treasury yields as sellers took over around midday trading.