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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   94-18 (-02.5)  
  FN 2.5% Coupon   102-18 (-02)  
  Support   1.263%  
  Resistance   0.796%  
  Tuesday, March 30, 2021

Treasury Yields Rise to a 14-Month High & Stocks decline as Biden Focuses on Spending

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.7278, 1.97 bps increased from prior closing of 1.7081.
US Stocks continued their decline this morning, with the S&P 500 Index dropping 0.3%, as investors weighed the consequences of more stimulus and the implosion of Archegos Capital Management. Additionally, The Nasdaq 100 Index sank 0.7% and the Nasdaq Composite Index dropped 0.6%. On the other hand, 10-Year Treasury yields increased to 1.76% and the five-year rate reached a 14-month high with a 0.95% increase. The Stoxx Europe 600 Index extended its highest level in 13 months with a 0.4% increase, as stocks for banks and automakers gained momentum. Companies linked to the Archegos block trades such as Discovery Inc. and ViacomCBS saw gains. Tesla Inc. fell after news that Xiaomi Corp. plans to invest $15 billion in the manufacturing of electric cars. As Pfizer Inc. and Moderna Inc. vaccines show more progress on coronavirus prevention, investors begin to focus on the strength of pandemic recovery and the risks of inflation. In terms of currencies, The Bloomberg Dollar Spot Index saw a 0.4% increase to 1,154.20 while the Euro dipped 0.4% to $1.1721. Elsewhere, gold depreciated 1.7% to $1,683.90 per troy ounce, its biggest tumble in a month. In the housing market, after $3 trillion of refinancing in 2020, US mortgage lenders are finally being hit with rising rates as the 30-year fixed-rate hit 3.17% last week, a 9-month high. However, mortgage companies are projected to originate $3.9 trillion in loans this year. As the market rebounds, once-unemployed borrowers with federally-backed loans could become eligible to refinance and draw equity from their homes. Coming up on Wednesday, President Joe Biden will address government spending on his new stimulus plan, aimed at strengthening  infrastructure and reducing inequality.
The curve has bear-steepened with UST 10-Year yield up 1.97 bps.
This Week's Events
  03/29 Dallas Fed Manf. Activity 07:30 Mar 16.80 28.90 17.20 -  
  03/30 S&P CoreLogic CS 20-City YoY NSA 06:00 Jan 11.20% 11.10% 10.10% 10.17%  
  03/30 S&P CoreLogic CS 20-City MoM SA 06:00 Jan 1.20% 1.20% 1.25% 1.30%  
  03/30 Conf. Board Consumer Confidence 07:00 Mar 96.90 109.70 91.30 90.40  
  03/31 MBA Mortgage Applications  04:00 26 Mar - - -2.50% -  
  04/01 Initial Jobless Claims 05:30 27 Mar 678k - 684k -  
  04/01 Continuing Claims 05:30 20 Mar 3750k - 3870k -  
  04/02 Average Hourly Earnings MoM 05:30 Mar 0.10% - 0.20% -  
  04/02 Average Hourly Earnings YoY 05:30 Mar 4.50% - 5.30% -  
  04/02 Change in Nonfarm Payrolls 05:30 Feb F 650k - 379k -  
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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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