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Market Brief – Wednesday 6/9/21

Stocks started the day higher and were holding their overnight gains in early trading. Treasury yields collapsed in overnight trading and despite sellers attempting to drive yields back up, yields were holding most of their overnight gains in early trading.

Mortgage applications fell -3.1% last week as purchase applications rose +0.3% and refinance applications fell -5.0%.

The Department of Energy reported crude oil inventories as Crude: -5.241mm (-2.036mm expected), Cushing: +165k, Gasoline: +7.046mm (+698k expected), and Distillates: +4.412mm (+1.358mm expected). Crude oil fell following the report.

Today’s $38 billion 10-year Treasury Note auction was met with strong demand as foreign bidders took 65.0% of the auction and domestic bidders took 19.2% of the auction, leaving securities dealers with 15.7% or $5.973 billion. Treasury yields fell following the auction.

Stocks closed slightly lower as buyers are showing signs of exhaustion. Treasury yields closed lower but were unable to hold their overnight lows as sellers ignored today’s strong Treasury Note auction in hopes for an inflationary CPI print tomorrow.