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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   97-29 (-04)  
  FN 2.5% Coupon   105-04.5 (+00.5)  
  Support   0.902%  
  Resistance   0.658%  
  Tuesday, January 19, 2021

Treasury Yields Rise as Janet Yellen Begins her Confirmation Hearing

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.1159, 3.24 bps increased from prior closing of 1.0835.

US stocks opened higher this morning, ahead of Treasury Secretary Janet Yellen's confirmation hearing. Notable early movers include Goldman Sachs Group Inc., which saw shares rise after reporting profits doubled. Additionally, Bank of America Corp. saw shares decline as fixed income trading underwhelmed, meanwhile General Motors Co. noted gains following an investment by Microsoft Corp. in its self-driving car startup. Janet Yellen is expected to begin her hearing in front of the Senate Financing Committee today at 10:00 AM (PT), with President-elect Joe Biden's $1.9 trillion stimulus package to be covered amongst various topics. Globally, the euro rose as the EU is set to present a plan on strengthening the currencies international role on Tuesday. And in Asia, Hong Kong shares closed at the highest level since 2019, with the Hang Seng index noting an increase of 2.7%. Elsewhere WTI crude rose by 1% while Gold lowered by 0.2% towards $1,837.07 an ounce. Coming up this week, Joe Biden will take his post as United States president on Wednesday. On the economic calendar, MBA Mortgage Applications will be reporting tomorrow, and on Thursday, Housing Starts and Initial Jobless Claims will report, with expectations set at 1.56mm and 930K, respectively.

The curve has bear-steepened with UST 10-Year yield up 3.24 bps.
This Week's Events
  01/20 MBA Mortgage Applications 04:00 15 Jan - - 16.70% -  
  01/21 Building Permits 05:30 Dec 1605k - 1639k 1635k  
  01/21 Building Permits MoM 05:30 Dec -1.80% - 6.20% 5.90%  
  01/21 Housing Starts 05:30 Dec 1560k - 1547k -  
  01/21 Housing Starts MoM 05:30 Dec 0.80% - 1.20% -  
  01/21 Initial Jobless Claims 05:30 16 Jan 930k - 965k -  
  01/21 Continuing Claims 05:30 9 Jan 5300k - 5271k -  
  01/21 Bloomberg Consumer Comfort 06:45 17 Jan - - 38.50 -  
  01/22 Markit US Manufacturing PMI 06:45 Jan P 56.50 - 57.10 -  
  01/22 Markit US Composite PMI 06:45 Jan P - - 55.30 -  
  01/22 Markit US Services PMI 06:45 Jan P 53.20 - 54.80 -
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  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.  
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