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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   103-25 (+06)  
  FN 3.5% Coupon   100-06 (+02.5)  
  Support   3.237%  
  Resistance   2.622%  
Wednesday, February 06, 2019
Market opened today’s session with treasuries advancing across all maturities. 10-year treasury yield is at 2.6821, 1.62 bps decreased from prior closing of 2.6983.

US stock index futures fluctuated this morning after General Motors Co. posted stronger profit than estimates while Electronic Arts and Take Two slid after posting disappointing results. Treasuries advanced and the dollar extended its gain to a fifth day as delayed report showed that the US trade deficit fell in November. Last night, President Trump delivered his State of the Union address. Although he did not declare a national emergency over the border wall, he vowed again to get it built which might have increased the possibility of another shutdown with the deadline to reach a deal on keeping the government funded fast approaching. Today, Fed Chair Powell’s first public meeting in Washington following the January rate decision will be closely parsed as investors look for clues on what year 2019 holds. Elsewhere, WTI crude inched lower below $53.50 a barrel.

MBA Mortgage Applications fell 2.50% last week after falling 3.00% in week prior. Purchases decreased 4.90% while refinances went up 0.30% after both falling 2.30% and 5.50% in prior, respectively. The US trade deficit in November narrowed to $49.30 Billion from an upwardly revised prior of $55.70 Billion deficit vs. consensus of $54.00 Billion deficit. The US Treasury is scheduled to auction off $27 Billion of 10-Year notes at 10:00 AM (PT) today.

The curve has bull-flattened with UST 10-year yield down 1.62 bps.
This Week's Events
  02/04 Factory Orders 07:00 Nov 0.30% -0.60% -2.10% -  
  02/04 Durable Goods Orders 07:00 Nov F 1.50% 0.70% 0.80% -  
  02/04 Durables Ex Transportation 07:00 Nov F 0.00% -0.40% -0.30% -  
  02/05 Markit US Services PMI 06:45 Jan F 54.20 54.20 54.20 -  
  02/05 Markit US Composite PMI 06:45 Jan F - 54.40 54.50 -  
  02/06 MBA Mortgage Applications 04:00 1 Feb - -2.50% -3.00% -
  02/07 Initial Jobless Claims 05:30 2 Feb 221k - 253k -  
  02/07 Continuing Claims 05:30 26 Jan 1733k - 1782k -  
  02/07 Bloomberg Consumer Comfort 06:45 3 Feb - - 57.40 -  
  02/08 No Data - - - - - -  
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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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