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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   98-02 (-10.5)  
  FN 2.5% Coupon   104-11.5 (-02.5)  
  Support   1.062%  
  Resistance   0.794%  
  Friday, February 19, 2021

Treasury Yields Rise as Market Closes Losing Streak

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.3279, 3.23 bps increased from prior closing of 1.2956.

US stocks opened higher this morning, closing a three-day decline not seen since December. Early movers include Bellwether Applied Materials Inc., which saw shares higher following a strong forecast fueled by higher demand for its semiconductor-related equipment. Elsewhere WTI Crude lowered by 0.7% towards $60.07 a barrel, all the while Gold rose by 0.3% to $1,781.05 an ounce. On the economic front, Manufacturing PMI for the month of February slightly failed to meet expectations, after reporting at 58.50. Reaching the highest point since 2009, increases in US business costs have been met with strong demand, as seen by service providers and manufacturers. Existing Home Sales for the month of January beat expectations after reporting at 6.69mm. Reporting at a three month high, low borrowing costs and strong demand for single family homes have helped drive up home prices, however, headwinds remain in limited inventory and increasing mortgage rates going forward. Notably, condominium purchases rose by 4.1%, all the while existing home sales increased in the South and Midwest, while dropping in the West and Northeast. Reporting on Monday is the Leading Index, with expectations set at an increase of 0.30%.

The curve has bear-steepened with UST 10-Year yield up 3.23 bps.
This Week's Events
  02/16 Empire Manufacturing 05:30 Feb 6.00 12.10 3.50 -  
  02/17 MBA Mortgage Applications 04:00 12 Feb - -5.10% -4.10% -  
  02/18 Building Permits 05:30 Jan 1680k 1881k 1709k 1704k  
  02/18 Building Permits MoM 05:30 Jan -1.40% 10.40% 4.50% 4.20%  
  02/18 Housing Starts 05:30 Jan 1660k 1580k 1669k 1680k  
  02/18 Housing Starts MoM 05:30 Jan -0.50% -6.00% 5.80% 8.20%  
  02/18 Initial Jobless Claims 05:30 13 Feb 773k 861k 793k 848k  
  02/18 Continuing Claims 05:30 6 Feb 4425k 4494k 4545k 4558k  
  02/18 Bloomberg Consumer Comfort 06:45 14 Feb - 45.80 44.90 -  
  02/19 Markit US Manufacturing PMI 06:45 Feb P 58.80 58.50 59.20 -  
  02/19 Markit US Composite PMI 06:45 Feb P - 58.80 58.70 -  
  02/19 Markit US Services PMI 06:45 Feb P 58.00 58.90 58.30 -
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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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