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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   103-15.5 (+03)  
  FN 3.5% Coupon   99-27.5 (+01)  
  Support   3.237%  
  Resistance   2.543%  
Wednesday, January 09, 2019
Market opened today’s session with treasuries nearly unchanged across all maturities. 10-Year treasury yield is at 2.7243, 0.37 bps decreased from prior closing of 2.7280.

Stocks rose globally this morning as optimism grew out of the mid-level trade negotiations between the US and China. Treasuries remained steady as investors awaited the minutes from the December FOMC meeting which is scheduled to be released at 11:00 AM (PT) today. The dollar slid and WTI crude gained, breaking above $50 a barrel this morning. In Washington, the US government still remains partially shut down with no signs of breaking the impasse. Last night, President Trump made his case to highlight the importance of strengthened border security in a prime time television address from the Oval Office; however, it was not well received by the Democratic leaders, which indicates the shutdown could potentially drag on for a little longer.

There was a surge in MBA Mortgage Applications reading which printed 23.50% increase vs. 8.50% decline prior. Both purchases and refinances increased 16.50% and 35.30% after falling 7.60% and 10.60% prior, respectively. The US Treasury is scheduled to auction off $24 Billion of 10-Year notes at 10:00 AM (PT) today, and Fed Chair Powell will speak to the Economic Club of Washington tomorrow.

The curve has bull-steepened with UST 10-Year yield down 0.37 bps.
This Week's Events
  01/07 ISM Non-Manufacturing Index 07:00 Dec 58.50 57.60 60.70 -  
  01/08 NFIB Small Business Optimism 03:00 Dec 103.00 104.40 104.80 -  
  01/08 JOLTS Job Openings 07:00 Nov 7050 - 7079 -  
  01/09 MBA Mortgage Applications 04:00 4 Jan - 23.50% -8.50% -
  01/09 FOMC Meeting Minutes 11:00 19 Dec - - - -  
  01/10 Initial Jobless Claims 05:30 5 Jan 226k - 231k -  
  01/10 Continuing Claims 05:30 29 Dec 1740k - 1740k -  
  01/10 Bloomberg Consumer Comfort 06:45 6 Jan - - 59.60 -  
  01/10 Wholesale Inventories MoM 07:00 Nov F 0.50% - - -  
  01/10 Wholesale Trade Sales MoM 07:00 Nov - - -0.20% -  
  01/11 CPI MoM 05:30 Dec -0.10% - 0.00% -  
  01/11 CPI YoY 05:30 Dec 1.90% - 2.20% -  
  01/11 Monthly Budget Statement 11:00 Dec $0.0b - -$204.90b -  
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  This information is provided solely for informational use and is not intended as trading or investment advice 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  
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