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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   97-30.5 (-01)  
  FN 2.5% Coupon   105-03.5 (00)  
  Support   0.902%  
  Resistance   0.658%  
  Wednesday, January 20, 2021

Treasury Yields Rise on Joe Biden's Inauguration Day

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.0972, 0.86 bp increased from prior closing of 1.0886.

US stocks opened higher this morning as Joe Biden's inauguration into the office of the president takes place today. Technology stocks led gains, with Netflix Inc. noting a 10% increase in shares after reporting an increase in subscribers. In regards to the position of secretary treasury for the United States of America, Janet Yellen reaffirmed her support for Joe Biden's $1.9 trillion relief package, in addition to stating a Biden administration will not be pursuing a weaker dollar in the face of China's "abusive" trade practices. On the virus front, Germany recorded a new high for daily deaths, meanwhile South Africa's new virus strand brought into question the efficacy of currently administered vaccines. Elsewhere, WTI crude increased by 1.0% while Gold remained relatively unchanged at $1,841.05 an ounce. On the economic front, MBA Mortgage Applications for the week ending January 15, dropped by 1.90%. Notably, purchases were up by 2.70%, meanwhile Refi's fell by 4.70% after having increased by 20.10% the week prior. Refi's accounted for 72.30% of all loans while the average 30 year fixed rate stood at 2.92%. Reporting tomorrow are Housing Starts and Initial Jobless Claims, both expected at 1.56mm and 935K, respectively.

The curve has bear-steepened with UST 10-Year yield up 0.86 bp.
This Week's Events
  01/20 MBA Mortgage Applications 04:00 15 Jan - -1.90% 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 935k - 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 53.40 - 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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