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Pharma companies are facing pricing pressure from several directions, including from the U.S. Medicare negotiations

The Freddie Mac says that the 30 year average mortgage rate fell to 6.23% from 6.26% last week.

The recent lows going back to October 2022 is at 6.09%. The low price on this last cycle to the downside has taken the rate down to 6.19%.

This article was written by Greg Michalowski at investinglive.com.

EUR/JPY trades higher on Wednesday around 181.30, up 0.40% at the time of writing. The cross benefits from improving risk sentiment as investors closely track political statements hinting at potential progress toward a peace agreement between Russia and Ukraine.

The major European indices are closing higher on the day. The gains were led by the Spain’s Ibex which increase by 1.36%.

A snapshot of the closing levels shows:

• German DAX, +0.98%
• France’s CAC +0.88%
• UK’s FTSE 100 +0.5%
• Spain’s Ibex +1.36%
• Italy’s FTSE MIB +1.01%

As London/European traders head for the exits, the major US indices are trading comfortably higher with the NASDAQ leading with a gain of 1.02%. The S&P index is up 0.93% in the Dow industrial average is up 0.90%.

US yields are mixed with the shorter end higher in the longer end lower.:

• 2-year yield 3.487%, +2.8 basis points
• 5 year yield 3.579%, +1.4 basis points
• 10 year yield 4.005%, +0.4 basis points
• 30 year yield 4.652%, -0.6 basis points.

In other markets:

• Crude oil is trading up $0.35 at $58.31.
• Gold is up $36 at $4167
• Silver is up $1.54 or 3.04% at $53.
• Bitcoin is up $500 at $87,836.

This article was written by Greg Michalowski at investinglive.com.

United States 4-Week Bill Auction rose from previous 3.89% to 3.905%

United States EIA Natural Gas Storage Change increased to -11B in November 21 from previous -14B

Fulton County Superior Court Judge Scott McAfee’s ruling ends the final case against Trump that remained unresolved after he returned to the White House.

The British Pound (GBP) edges higher against the US Dollar (USD) on Wednesday as markets digest the United Kingdom’s Autumn Budget, with traders weighing fresh fiscal measures and updated economic projections. Read More…

• High yield 3.781%
• WI level at the time of the auction 3.775%
• Tail 0.6 basis points versus 6 month average of -0.6 basis points
• Bid to cover 2.46X vs 6 month average of 2.56X
• Dealers 9.44% versus 6 month average of 9.2%
• Directs 30.27% versus 6 month average of 23.5%
• Indirects 56.65% versus 6 month average of 67.2%

AUCTION GRADE: C-/D+

Below average auction with low international demand. Domestic demand was fairly strong but came at a high yield above the WI level at the time of the auction.

This article was written by Greg Michalowski at investinglive.com.

The U.S. Treasury will complete the coupon auctions for the week with the sale of 7 year notes at the bottom of the hour ($44 billion). The auction is a little early ahead of the Thanksgiving day holiday. Despite the early auction, the bond market will remain open for the rest of the trading day.

The auction results will be compared to the 6 month averages of the major components to determine the relative demand for both domestic and international buyers:

• Tail -0.6 basis points
• Bid to cover 2.56X
• Direct buyers (domestic buyers) 23.5%
• Indirect buyers (international buyers) 67.2%
• Dealers (they take the balance) 9.2%

The 2 and 5 year note auctions were met with average demand.

This article was written by Greg Michalowski at investinglive.com.