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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   108-02.5 (-17)  
  FN 3.5% Coupon   105-26.5 (00)  
  Support   2.594%  
  Resistance   0.569%  
  Monday, April 6, 2020

Treasury Yields Climb as Stocks Rebound on Optimism around Virus

Market opened today’s session with treasuries selling-off across all maturities. 10-year Treasury yield is at 0.6478, 5.30 bps increased from prior closing of 0.5948.

Stocks surged to start the week after the reported death tolls in some of the hot spots of the pandemic showed signs of slowing down over the weekend. New York reported its first daily decline in the virus-related deaths and slowing death rates in Europe also boosted optimism that the US would be nearing its peak soon, easing investor sentiment this morning. Government spending around the globe to ease the economic blow from the pandemic kept increasing as well; both Japan and Singapore announced stimulus packages with Japan set to introduce a state of emergency as well. Treasuries fell this morning, but mortgages remained relatively flat. Elsewhere, WTI crude pared some of its losses after Russia and Saudi Arabia were reportedly very close to a deal which is one of the main reasons that triggered its recent sell-off. There is no economic event scheduled but later today, the US Treasury is scheduled to auction off $40 billion of 13-week bills, $54 billion of 26-week bills, and 3-year notes.

The curve has bear-steepened with UST 10-Year yield up 5.30 bps.

This Week's Events
  04/06 No Data - - - - - -  
  04/07 JOLTS Job Openings 07:00 Feb 6500 - 6963 -  
  04/08 MBA Mortgage Applications 04:00 3 Apr - - 15.30% -  
  04/09 PPI Final Demand MoM 05:30 Mar -0.40% - -0.60% -  
  04/09 PPI Final Demand YoY 05:30 Mar 0.50% - 1.30% -  
  04/09 Initial Jobless Claims 05:30 4 Apr 5000k - 6648k -  
  04/09 Continuing Claims 05:30 28 Mar - - 3029k -  
  04/09 Bloomberg Consumer Comfort 06:45 5 Apr - - 56.30 -  
  04/09 U. of Mich. Sentiment 07:00 Apr P 74.70 - 89.10 -  
  04/10 CPI Core Index SA 05:30 Mar 266.721 - 267.070 -  
  04/10 CPI MoM 05:30 Mar -0.30% - 0.10% -  
  04/10 CPI YoY 05:30 Mar 1.60% - 2.30% -  
  04/10 CPI Index NSA 05:30 Mar 258.144 - 258.678 -  
  04/10 Real Avg Weekly Earnings YoY 05:30 Mar - - 0.60% -
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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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