Back to top

Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   98-14.5 (-25.5)  
  FN 2.5% Coupon   105-09 (-04.5)  
  Support   0.840%  
  Resistance   0.634%  
  Wednesday, January 6, 2021

Treasury Yields Rise as Georgia Leans in Democrats Favor

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.0473, 9.24 bps increased from prior closing of 0.9549.
US stocks opened mixed this morning as the results from Georgia's runoff elections remain front and center. As Democrats are poised to take control of Congress, an expected increase in fiscal spending has shifted money away from tech companies, and into financial assets that benefit from stronger economic performance. Elsewhere, the New York Stock Exchange will follow through with delisting three major Chinese companies after US Treasury Secretary Steven Mnuchin criticized NYSE's earlier decision to let the companies continue trading. Bitcoin reached a new record peak on Wednesday surpassing $35,000, showcasing its inherent volatility after having dropped by as much as 17% on Monday. WTI crude increased by 0.1% while Gold declined by 0.9% to $1,932.13 an ounce. On the economic front, MBA Mortgage Applications for the week ending January 1, rose by 1.70% after having fallen by 5.80% a week prior. Purchases dipped by 1.60% while refis increased by 3.00% after having fallen by 8.80% in the prior week. Refis composed 73.50% of all loans, meanwhile the average 30-year fixed rate stood at 2.86%. ADP Employment Change posted a surprise decline for the month of December after failing to meet expectations of 75K and posting at -123K this morning. The first decline since April, the bulk of declines were seen in the leisure and hospitality sector, with businesses employing over 1,000 workers shedding the most amount of jobs. Elsewhere, Factory Orders and Durable Goods Orders both reported an increase of 1.00% for the month of November. Reporting tomorrow are Initial Jobless Claims and Trade Balance, both expected at 803K and -$67.3bb, respectively.
The curve has bear-steepened with UST 10-Year yield up 9.24 bps.
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 66.00 77.60 65.40 -  
  01/06 MBA Mortgage Applications 04:00 1 Jan - 1.70% -5.80% -  
  01/06 ADP Employment Change 05:15 Dec 75k -123k 307k 304k  
  01/06 Markit US Services PMI 06:45 Dec F 55.20 54.80 55.30 -  
  01/06 Markit US Composite PMI 06:45 Dec F - 55.30 55.70 -  
  01/06 Factory Orders 07:00 Nov 0.70% 1.00% 1.00% 1.30%  
  01/06 Durable Goods Orders 07:00 Nov F 0.90% 1.00% 0.90% -  
  01/06 Durables Ex Transportation 07:00 Nov F 0.40% 0.40% 0.40% -  
  01/07 Initial Jobless Claims 05:30 2 Jan 803k - 787k -  
  01/07 Continuing Claims 05:30 26 Dec 5200k - 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