Back to top

Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-21 (+01.5)  
  FN 2.5% Coupon   105-13 (-01.5)  
  Support   0.791%  
  Resistance   0.615%  
  Monday, January 4, 2021

Treasury Yields Rise to Open a New Year

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.9215, 0.83 bp increased from prior closing of 0.9132.
US stocks started the year strong this morning, rising to record highs as markets placed bets on vaccine effectiveness in helping curve a recent surge in global coronavirus cases. A new strand of Covid-19 has already been detected in the US, with 231,000 new cases being reported last Thursday and four states reporting over a million infections, as seen in California and New York. Notably, Bitcoin dropped by 17% this morning, following a record run-up towards all time highs on Sunday. Crypto-linked companies, Ebang International Holdings and Marathon Patent Group saw shares rise as a result of bitcoin's move. Elsewhere, WTI Crude dropped by 0.4% while Gold rose by 2.1% to $1,938.55 an ounce. On the economic front, Markit US Manufacturing PMI beat expectations after reporting at 57.10 for the month of December. Reporting at the highest figure since September 2014, today's number also showcased a slight rise in the employment reading from 51.70 a month ago, to 52.20 today. Construction Spending MoM failed to meet expectations after reporting an increase of 0.90% for the month of November. While today's figure still shows a rise in Construction Spending, spending is still lower than it was a month prior, with Government Construction Spending accounting for 23.8% of total spending in November. Important events coming up this week include Georgia's run-off election on Tuesday, with two senate seats up for grabs, a decisive victory by either party could shape control of the senate. And on Wednesday, FOMC minutes are due, in addition to which Congress will meet to count electoral college votes and officially declare the winner of 2020's Presidential Election.
The curve has bear-steepened with UST 10-Year yield up 0.83 bp.
This Week's Events
  01/04 Markit US Manufacturing PMI 06:45 Dec F 56.30 57.10 56.50 -  
  01/04 Construction Spending MoM 07:00 Nov 1.00% 0.90% 1.30% 1.60%  
  01/05 ISM Prices Paid 07:00 Dec - - 65.40 -  
  01/06 MBA Mortgage Applications 04:00 1 Jan - - 0.80% -  
  01/06 ADP Employment Change 05:15 Dec 50k - 307k -  
  01/06 Markit US Services PMI 06:45 Dec F 55.20 - 55.30 -  
  01/06 Markit US Composite PMI 06:45 Dec F - - 55.70 -  
  01/06 Factory Orders 07:00 Nov 0.70% - 1.00% -  
  01/06 Durable Goods Orders 07:00 Nov F 0.90% - 0.90% -  
  01/06 Durables Ex Transportation 07:00 Nov F 0.40% - 0.40% -  
  01/07 Initial Jobless Claims 05:30 2 Jan 800k - 787k -  
  01/07 Continuing Claims 05:30 26 Dec 5150k - 5219k -  
  01/07 Bloomberg Consumer Comfort 06:45 3 Jan - - 44.60 -  
  01/08 Average Hourly Earnings MoM 05:30 Dec 0.20% - 0.30% -  
  01/08 Average Hourly Earnings YoY 05:30 Dec 4.50% - 4.40% -  
  01/08 Change in Nonfarm Payrolls 05:30 Dec 73k - 245k -
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
  This information is provided solely for informational use and is not intended as an advice for trading or investment purposes in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.  
© Sun West Mortgage Company, Inc. All Rights Reserved