Markets Await Comments by Powell

It’s a quiet morning with not much in the way of data as investors wait to hear what Fed Chairman Jerome Powell has to say when he addresses the National Association for Business Economics a little later today. Nancy Pelosi and Steven Mnuchin will also be continuing their negotiations surrounding the details of the next package of fiscal stimulus. The nation’s Trade Balance for August is expected to be announced a little later this morning and surveys suggest the deficit widened to $66.2B from $63.6B. The BLS will be releasing its JOLTS report at 9:00 CDT.

Treasury prices are little changed so far with the Ten-Year around 78 basis points after yesterday’s sell-off while the Long Bond is barely below 1.60%. The Two-Year hasn’t moved much either, and is still yielding around 14 basis points. Crude oil has almost made it back to $40 and gold’s slight move upward has taken it to $1,917. Domestic equity markets should have another positive opening after yesterday’s big rally.