Job applications, sale of 30-year bonds, ECB, Coupang IPO

Β© Reuters

By Geoffrey Smith – The Treasury ends its gigantic bond sale this week with a 30-year bond auction, amid a market environment largely improved by lukewarm inflation figures. Jobless claims are due 8:30 a.m. ET. The European Central Bank holds its regular political meeting and press conference, and Coupang follows Roblox to market as the IPO move continues. OPEC’s monthly oil market report will also be released at a later date. Here’s what you need to know about the financial markets on Thursday, March 11e.

1. The Treasury will complete the gigantic bond sale after jobless claims

The final leg of the gigantic US Treasury bond sale comes at 1 p.m. ET, in a much easier context than feared earlier this week. The Treasury will auction 30-year bonds more than 10 basis points below the market earlier in the week.

This was made possible by Wednesday’s tame data for February, which gave many reassurance that the feared withdrawal of monetary stimulus is not an issue at this time.

The only major test of bond market sentiment on Thursday is expected to be the weekly data, where a drop of 20,000 initial requests is expected, to 725,000.

2. Lagarde on the tightrope at the ECB press conference

The European Central Bank holds its regular political meeting at a time when the declining and stabilizing bond markets have removed any pressure it may have felt to act.

As such, the market will likely focus on that of President Christine Lagarde and whether journalists can figure it out on what it would take for the ECB to change the pace of its bond purchases.

Data released on Tuesday showed that the ECB effectively stepped up its two weeks ago to stem the sharp rise in yields. However, this was masked by the high volume of buybacks under a bond buying program from ten years ago.

There will likely also be questions as to whether the upward reversal in Covid-19 infections in some eurozone countries represents a new risk for an economy that is already expected to lag behind the United States and the Kingdom. – United this year.

3. Stocks Should Extend Open Gains

U.S. stock markets are expected to open later later, supported by the $ 1.9 trillion final pass through the House of Representatives on Wednesday and the prospect of one. Some banks have estimated that as much as $ 170 billion in stimulus funds could end up in financial markets one way or another.

At 6.30am ET (11.30am GMT), the contract led the way with a gain of 1.7%, while the contract was up 0.7% and the contract added 0.2% to its record close on Wednesday.

Some stocks likely to be the focus later include American Airlines (NASDAQ :), following the biggest debt sale ever by an airline, and Tesla (NASDAQ :), which is said to have been for two of its models, and which had the best-selling electric car in China in the form of its Model Y, according to overnight data. GameStop (NYSE πŸ™‚ also extends its last crazy run.

4. Coupang to follow Roblox as the IPO train continues

The South Korean e-commerce company is expected to start operations after raising $ 4.55 billion through its IPO, selling 130 million shares at a price of $ 35.

The IPO, which was about 25% better than expected earlier this week, values ​​the company at some $ 60 billion.

The Roblox (NYSE πŸ™‚ gaming platform, which rose more than 54% in its debut on Wednesday despite weakening at the close, was listed up 12% in pre-release, according to various reports.

5. Oil ignores Russian warning; OPEC report due

Crude oil prices rose in line with other risky assets, driven by renewed optimism in the US and Chinese stock markets (the latter also pushed up base metal prices overnight).

The market ignored comments from the Russian petroleum minister hinting at a larger increase in supply from OPEC and its allies in order to avoid losing market share to other producers (including states -United).

OPEC is expected to publish its article on the global oil market later, which will add more context to the swings in the United States over the past two weeks. futures were up 0.9% to $ 65.23 per barrel, while they were up 1.2% to $ 68.69 per barrel