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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   94-21.5 (-11.5)  
  FN 2.5% Coupon   102-16.5 (-06)  
  Support   1.269%  
  Resistance   0.798%  
  Friday, April 02, 2021

Treasury Yields Rise Along with Employment and US Stock Futures

The market opened today's session with treasuries lower across all maturities. The 10-Year Treasury yield is at 1.7127, 4.28 bps higher than prior closing of 1.6699.
US Stock futures climbed after data showed the largest increase in employment in seven months. Most other markets were closed for Good Friday. Treasuries will be open for a half day session, whereas the New York Stock Exchange is closed. S&P 500 futures went up 0.5% since the March employment report, which indicated new employment for around 916,000 workers. Now, businesses will have a clearer view of demand, as this new wave of stimulus-driven consumer spending washes over service providers. Additionally, both local and state government education employment increased by about 126,000, reflecting on the returns of in-person learning at schools. Furthermore, the Labor Department report showed a 6% drop in unemployment. Rising coronavirus cases have severely damaged the labor market during these past months. However, now that more than two million Americans are getting vaccinated each day, the economy is picking up. This gradual improvement can be expected as more people get vaccinated, schools reopen, and cash is spent outside the household. President Joe Biden’s $2.25 trillion infrastructure plan still raises doubts on how much can actually be delivered. Elsewhere, stocks in Japan and South Korea saw gains. Coming up on April 12, Biden’s economic advisors will meet with auto companies to discuss the global shortage of microprocessors.
The curve has bear-steepened with UST 10-Year yield up 4.28 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% -0.10% 0.20% 0.30%  
  04/02 Average Hourly Earnings YoY 05:30 Mar 4.50% 4.20% 5.30% 5.20%  
  04/02 Change in Nonfarm Payrolls 05:30 Feb F 660k 916k 379k 468k  
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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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