Market Brief – Wednesday 7/22/20

Stocks were flat in overnight trading while Treasury yields rose in overnight trading. Treasury yields were trying to break a critical support level that would send 30-year Treasury yields to 1.2%.

Mortgage applications rose 4.1% last week with purchase applications rose +1.8% and refinance applications rose +4.3%.

Housing prices fell -0.3% in May and slowed to +4.9% from this time last year. Existing home sales rebounded +20.7% in June but missed expectations.

The Department of Energy reported crude oil inventories as Crude: +4.892mm (-2.088mm expected), Cushing: +1.375mm (+769k), Gasoline: -1.802mm (-1.386mm expected), and Distillates: +1.073mm (-618k expected). Crude oil traded following the report.

Today’s $17 billion 20-year Treasury Bond auction was met with strong demand as foreign bidders took 67.0% of the auction and domestic bidders took 11.8% of the auction, leaving securities dealers with 21.2% of the auction. Yields rose following the auction.

After a slow start to the day, stocks managed to close higher as technology stocks led the way. Treasury yields closed lower but sellers pushed yields back up from their early morning lows. Crude oil ignored the rise in inventories to close higher on the day.