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Market Brief – Thursday 11/12/20

Stocks were mixed in overnight trading while Treasury yields dipped in overnight trading as 30-year Treasury yields flirted with breaking below 1.7%.

Initial jobless claims fell to their lowest level since the pandemic as 709k Americans filed for unemployment benefits. Total persons claiming unemployment insurance benefits fell by -374k to 21.157 million last week.

The Consumer Price Index (CPI) was flat in October and slowed to +1.2% from this time last year. Excluding food and energy, Core CPI was flat in October and slowed to +1.6% from this time last year.

The Department of Energy reported crude oil inventories as Crude: +4.278mm (-913k expected), Cushing: -518k (-1.573mm), Gasoline: -2.309mm (-263k expected), and Distillates: -5.354mm (-1.864mm expected). Crude oil fell following the report.

Today’s $27 billion 30-year Treasury Bond auction was met with strong demand as foreign bidders took 61.9% of the auction and domestic bidders took 16.5% of the auction, leaving securities dealers with 21.6% of the auction or $5.817 billion. Treasury yields fell following the auction.

Stocks briefly rallied this morning before rolling over and closing in the red. Treasury yields fell most of the day to close lower. Crude oil was hammered lower after today’s EIA report while the dollar remained flat.