Market Brief – Wednesday 7/21/21

Dip buyers continue to be rewarded for their efforts as stocks rose in overnight trading. Treasury yields also rose in overnight trading, with 30-year Treasury yields moving over 1.9% as sellers double down on their inflationary bets.

Mortgage applications fell -4.0% last week as purchase applications fell -6.4% and refinance applications fell -2.8%.

The Department of Energy reported crude oil inventories as Crude: +2.108mm (-4.466mm expected), Cushing: -1.347mm, Gasoline: -121k (-1.043mm expected), and Distillates: -1.349mm (+557k expected). Crude oil rose following the report.

Today’s $24 billion 20-year Treasury Bond auction was met with mediocre demand as foreign bidders took 60.2% of the auction and domestic bidders took 18.9% of the auction, leaving securities dealers with 20.9% or $5.017 billion. Treasury yields rose following the auction.

Stocks and Treasury yields closed higher on the day.