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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   94-30.5 (+17.5)  
  FN 2.5% Coupon   102-22 (+06.5)  
  Support   1.269%  
  Resistance   0.798%  
  Thursday, April 01, 2021

Treasury Yields Fall as US Stocks Reach All-Time Highs

Today's market session opened with treasuries higher across all maturities. US 10-Year Treasury yield is at 1.6735, 6.69 bps lower than prior closing of 1.7404.
Led by the Tech sector, US Stocks climbed to all-time highs as increasing stimulus has created optimism about global recovery. The Nasdaq 100 Index increased 1.4% to 431.63, along with the S&P 500 Index which increased 0.7%, rising above 4,000. The Stoxx Europe 600 Index has maintained its 13-month all-time high with a 0.5% jump to 431.63. Microsoft Corp. saw gains for a second day in a row as the company closed a multibillion dollar deal to build HoloLens goggles for the US Army. Additionally, Western Digital Corp. and Micron Technology Inc. also increased after both companies have expressed potential dealings with Kioxia Holdings Corp. in Japan. Treasury yields fell as investors weighed President Biden’s tax plans and his chances of gaining approval for the $2.25 trillion stimulus. During his speech on Wednesday, Biden focused on how he would rebuild infrastructure, mentioning various projects, some of which included upgrading childcare facilities and bolstering the electrical grid. Initial Jobless Claims unexpectedly rose after last week’s drop. Despite this volatility, unemployment is expected to continue on its downtrend as vaccination progress enables economic growth and reopening. Central banks continue to assert their interest and commitment in low interest rates, causing investors to remain focused on inflation risk. In terms of currencies, the Bloomberg Dollar Spot Index dipped 0.2% to 1,150.08 meanwhile the euro jumped 0.3 to $1.1762. In upcoming news, the US employment report for March comes out on Friday.
The curve has bull-flattened with UST 10-Year yield down 6.69 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 - -2.20% -2.50% -  
  04/01 Initial Jobless Claims 05:30 27 Mar 675k 719k 684k 658k  
  04/01 Continuing Claims 05:30 20 Mar 3750k 3794k 3870k 3840k  
  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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