Back to top

Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   97-20.5 (-10.5)  
  FN 2.5% Coupon   105-08 (-00.5)  
  Support   0.902%  
  Resistance   0.658%  
  Wednesday, February 3, 2021

Treasury Yields Rise as Amazon and Alphabet Outperform

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.1237, 2.74 bps increased from prior closing of 1.0963.
US stocks opened higher this morning on the back of earning reports from Inc. and Alphabet Inc. Notably, Alphabet Inc. moved upwards by 8% after beating sales expectations, all the while Amazon Inc. saw shares rise on strong projections as derived from increased internet shopping. Recently popular shares of GameStop Corp. and AMC Entertainment Holdings Inc. also saw shares rise early morning, albeit at a slower pace than seen last week. The CBOE Volatility Index continues to be elevated even after reporting its biggest two day decline in three years, signalling volatility is still to be expected in the time ahead. Elsewhere, WTI Crude rose by 1.1% while Gold remained at roughly $1,837.37 an ounce. On the economic front, MBA Mortgage Applications noted a significant increase of 8.10% for the week ending January 29. Notably, purchases rose by 0.10%, while refis increased by 11.40%, after having dropped by 5.00% a week prior. The average thirty year fixed rate stood at 2.92% while refis accounted for 71.4% of all loans. ADP Employment Change for the month of January also noted a significant increase, well surpassing expectations after reporting at 174K. This figure comes after having reported a loss of 123 thousand jobs a month prior. Medium sized companies added the most jobs, according to ADP, with services companies such as health care, leisure, and hospitality noting the highest increases. Reporting tomorrow are Initial Jobless Claims and Durable Good Orders, both expected at 830K and +0.20%, respectively.
The curve has bear-steepened with UST 10-Year yield up 2.74 bps.
This Week's Events
  02/01 Markit US Manufacturing PMI 06:45 Jan F 59.10 59.20 59.10 -  
  02/01 Construction Spending MoM 07:00 Dec 0.90% 1.00% 0.90% 1.10%  
  02/01 ISM Prices Paid 07:00 Jan 76.00 82.10 77.60 -  
  02/03 MBA Mortgage Applications 04:00 29 Jan - 8.10% -4.10% -  
  02/03 ADP Employment Change 05:15 Jan 70k 174k -123k -78k  
  02/03 Markit US Services PMI 06:45 Jan F 57.40 58.30 57.50 -  
  02/03 Markit US Composite PMI 06:45 Jan F - 58.70 58.00 -  
  02/04 Initial Jobless Claims 05:30 30 Jan 830k - 847k -  
  02/04 Continuing Claims 05:30 23 Jan 4700k - 4771k -  
  02/04 Bloomberg Consumer Comfort 06:45 31 Jan - - 45.70 -  
  02/04 Factory Orders 07:00 Dec 0.70% - 1.00% -  
  02/04 Durable Goods Orders 07:00 Dec F 0.20% - 0.20% -  
  02/04 Durables Ex Transportation 07:00 Dec F 0.70% - 0.70% -  
  02/05 Average Hourly Earnings MoM 05:30 Jan 0.30% - 0.80% -  
  02/05 Average Hourly Earnings YoY 05:30 Jan 5.00% - 5.10% -  
  02/05 Change in Nonfarm Payrolls 05:30 Jan 88k - -140k -
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