|10-Year: +9/32....%.... GNMAs: .... USD/JPY: 112.69.... EUR/USD: 1.1361|
--Worries U.S-China trade deal will be averted after Huawei Technologies CFO is arrested in Canada (and expected to be extradited to U.S) on allegations the company violated U.S. trade sanctions on Iran
--All securities up for the day but finish well off best levels
--ADP employment Change for November: Actual 179,000, Briefing.com consensus 225,000, Prior revised to 225,000 from 227,000
--Q3 Productivity: Actual 2.3%, Briefing.com consensus 2.2%, Prior 2.2%. Unit labor costs: Actual 0.9%, Briefing.com consensus 1.2%, Prior 1.2%
--October Trade Deficit: Actual -$55.5 billion, Briefing.com consensus -$54.7 billion, Prior revised to -$54.6 billion from -$54.0 billion
--Initial Claims for week ending Dec. 01: Actual 231,000, Briefing.com consensus 225,000, Prior revised to 235,000 from 234,000. Continuing claims for week ending Nov. 24: Actual 1.631 million, Prior revised to 1.705 million from 1.710 million
--Factory Orders for October: Actual -2.1%, Briefing.com consensus -2.0%, Prior revised to +0.2% from +0.7%
--ISM Non-Manufacturing Index for November: Actual 60.7%, Briefing.com consensus 59.0%, Prior 60.3%
- The ADP Employment Change Report for November showed an estimated 179,000 positions were added to private sector payrolls (Briefing.com consensus 192,000)
- Nonfarm business sector labor productivity for the third quarter was revised to 2.3% (Briefing.com consensus 2.2%) from 2.2%. Unit labor cost growth was revised to 0.9% (Briefing.com consensus 1.2%) from 1.2%.
- The key takeaway from the report is that it points to fairly subdued labor costs in the third quarter.
- The trade deficit for October widened to $55.5 billion (Briefing.com consensus -$54.7 billion) from a downwardly revised $54.6 billion (from -$54.0 billion) in September.
- The key takeaway from the report is that it doesn't reflect any improvement in the U.S, trade deficit despite the tariff actions. The goods and services deficit has increased by $51.3 billion year-to-date, or 11.4%, from the same period in 2017.
- Initial jobless claims for the week ending December 1 decreased by 4,000 to 231,000 (Briefing.com consensus 225,000). Continuing claims for the week ending Nov. 24 decreased by 74,000 to 1.631 million.
- The key takeaway from the report is that initial claims, while down in the latest week, are starting to pick up in a move that suggests the low for this cycle has been reached.
- Yield check:
- 2-yr: -5 bps to 2.75%
- 3-yr: -5 bps to 2.76%
- 5-yr: -5 bps to 2.74%
- 10-yr: -4 bps to 2.88%
- 30-yr: -3 bps to 3.14%