- US sells 5-year notes at 3.645% vs 3.642% WI
- Italy plans to confirm it will bring deficit-to-GDP below 3% in 2026
- EIA weekly crude oil inventories -846K vs -2265K expected
- Eight things to look for in the Nvidia earnings report
- SEC notifies NFT marketplace OpenSea that it's likely to sue for securities law violations
Markets:
- Gold down $17 to $2507
- WTI crude oil down $0.78 to $74.75
- US 10-year yields up 1 bp to 3.84%
- S&P 500 down 0.6%
- USD leads, EUR lags
Angst was the theme in markets today, similar to in the countdown to Powell's Jackson Hole speech. That meant buying the dollar and selling equities today with the market in suspense ahead of Nvidia earnings.
Newsflow was very light with the only notable event being the five-year auction. It was a touch soft and that was even with a concession leading up to the results. That said, there was a decent drop in yields following yesterday's strong 2-year sale so it's tough to make the case that Treasury demand is softening, despite the eye-watering auction sizes.
There was some US dollar selling into the fix as we approach month end but it was reversed shortly afterwards. The dollar buying continued until late in the day and accelerated on some heavy stock market selling. But when stocks bounced, there was some relief in FX as well.
The result of today's trading is less-oversold dollar and the next cue will come from NVDA earnings and tomorrow's initial jobless claims report.
