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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   107-07.5 (-3.5)  
  FN 3.5% Coupon   106-01.5 (+01)  
  Support   2.594%  
  Resistance   0.569%  
  Wednesday, April 8, 2020

Treasury Yields Climb Further as Virus Expected to Turn Around This Week

Market opened today’s session with treasuries selling-off across all maturities. 10-year Treasury yield is at 0.7325, 2.03 bps increased from prior closing of 0.7122.

Stocks edged higher today as investors weighed the latest data surrounding the virus. The director of the National Institute of Allergy and Infectious Diseases said the US death count related to the virus is now lower than initially expected but he added the efforts to contain it should still be intensified. Also, it was reported overnight that the White House is developing plans to get the US economy back in action, starting with smaller cities that haven’t been heavily hit by the virus. President Trump’s top advisor Larry Kudlow also said the hope was to have the economy fully open in the next four to eight weeks, boosting investor sentiment. Treasuries inched lower and the dollar trimmed a gain but mortgages remained relatively stable. In the economic calendar, MBA mortgage applications to purchase homes in the US declined to the lowest since 2015, a fourth straight decline that underscored the economic fallout from the pandemic. The overall applications fell 17.90% after rising 15.30% in prior week. Both purchases and refinances fell 12.20% and 19.40% after falling 10.80% and rising 25.50% in prior week, respectively. Lastly, Bloomberg Consumer Comfort index slid to 49.90 from 56.30 prior.

The curve has bear-steepened with UST 10-Year yield up 2.03 bps.

This Week's Events
  04/06 No Data - - - - - -  
  04/07 JOLTS Job Openings 07:00 Feb 6500 6882 6963 7012  
  04/08 MBA Mortgage Applications 04:00 3 Apr - -17.90% 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 5250k - 6648k -  
  04/09 Continuing Claims 05:30 28 Mar - - 3029k -  
  04/09 Bloomberg Consumer Comfort 06:45 5 Apr - 49.90 56.30 -  
  04/09 U. of Mich. Sentiment 07:00 Apr P 75.00 - 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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