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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   97-15.5 (+08)  
  FN 2.5% Coupon   105-10.5 (+03)  
  Support   0.943%  
  Resistance   0.716%  
  Tuesday, February 9, 2021

Treasury Yields Drop as Inflation Takes Spotlight

Market opened today's session with treasuries higher across all maturities. 10-year Treasury yield is at 1.1413, 2.92 bps decreased from prior closing of 1.1705.

US stocks opened lower this morning as the Biden administration's push for further aid brings increased inflation into the spotlight. The spread between the US 5 year - 30 year yield curve placed against its German counterpart, reached its widest level since 2011, with the difference explained by higher inflation in the US market being priced in. Elsewhere, Bitcoin jumped on news Tesla Inc. purchased $1.5 billion in the cryptocurrency. WTI crude lowered to $57.81 a barrel while Gold rose by 0.6%. On the economic front, NFIB Small Business Optimism slightly lowered to 95.00 for the month of January. Reaching an eight month low, the sentiment index lowered on the back of weak economic spending and lower economic growth at the end of 2020, although small employers continue to welcome any stimulus package to be passed by congress. Reporting tomorrow are MBA Mortgage Applications and CPI MoM, with the latter expected to increase by 0.30% for the month of January.

The curve has bull-flattened with UST 10-Year yield down 2.92 bps.

This Week's Events
  02/09 NFIB Small Business Optimism 03:00 Jan 97.00 95.00 95.90 -  
  02/09 JOLTS Job Openings 07:00 Dec 6400 6646 6527 6572  
  02/10 MBA Mortgage Applications 04:00 5 Feb - - 8.10% -  
  02/10 CPI MoM 05:30 Jan 0.30% - 0.40% 0.20%  
  02/10 CPI YoY 05:30 Jan 1.50% - 1.40% -  
  02/10 CPI Index NSA 05:30 Jan 261.800 - 260.474 -  
  02/10 CPI Core Index SA 05:30 Jan 270.592 - 270.117 269.940  
  02/11 Initial Jobless Claims 05:30 6 Feb 758k - 779k -  
  02/11 Continuing Claims 05:30 30 Jan 4420k - 4592k -  
  02/11 Bloomberg Consumer Comfort 06:45 7 Feb - - 44.60 -  
  02/12 U. of Mich. Sentiment 07:00 Feb P 80.90 - 79.00 -
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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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