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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   108-14.5 (-14.5)  
  FN 3.5% Coupon   105-15 (+01)  
  Support   2.589%  
  Resistance   0.547%  
  Wednesday, April 22, 2020

Treasury Yields Climb as Stocks Rally Along with Oil

Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 0.6080, 3.89 bps increased from prior closing of 0.5691.

US stocks halted a two day sell-off as crude prices started to stabilize after a record plunge. While Bent crude dropped to a 21-year low in London, WTI crude surged above $13 a barrel after President Trump ordered the US Navy to destroy any and all Iranian gunboats that harass American ships at sea. A slew of earnings results also lifted investor sentiment; Chipotle reported sales that topped estimates, Kimberly-Clark posted strong toilet paper sales, and Texas Instruments also advanced on strong results. However, Netflix slumped this morning after proposing a debt offering despite the surge in its subscriber growth. In the economic calendar, MBA mortgage applications index fell 0.30% after rising 7.30% in prior week. Purchases increased 2.10% and refinances fell 0.80% after falling 1.80% and rising 10.10% in prior week, respectively. Lastly, FHFA House Price Index in February slightly rose to 0.70% from an upwardly revised prior of 0.50% vs. 0.30% consensus.

The curve has bear-steepened with UST 10-Year yield up 3.89 bps.
This Week's Events
  04/20 Chicago Fed Nat Activity Index 05:30 Mar -3.00 -4.19 0.16 0.06  
  04/21 Existing Home Sales 07:00 Mar 5.25m 5.27m 5.77m 5.76m  
  04/21 Existing Home Sales MoM 07:00 Mar -9.00% -8.50% 6.50% 6.30%  
  04/22 MBA Mortgage Applications 04:00 17 Apr - -0.30% 7.30% -  
  04/22 FHFA House Price Index MoM 06:00 Feb 0.30% 0.70% 0.30% 0.50%  
  04/23 Initial Jobless Claims 05:30 18 Apr 4500k - 5245k -  
  04/23 Continuing Claims 05:30 11 Apr 17000k - 11976k -  
  04/23 Bloomberg Consumer Comfort 06:45 19 Apr - - 44.50 -  
  04/23 Markit US Manufacturing PMI 06:45 Apr P 35.00 - 48.50 -  
  04/23 Markit US Services PMI 06:45 Apr P 30.00 - 39.80 -  
  04/23 Markit US Composite PMI 06:45 Apr P - - 40.90 -  
  04/24 Durable Goods Orders 05:30 Mar P -12.00% - 1.20% -  
  04/24 Durables Ex Transportation 05:30 Mar P -6.50% - -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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