Back to top

Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   96-03 (00)  
  FN 2.5% Coupon   103-22.5 (-00.5)  
  Support   1.570%  
  Resistance   1.187%  
  Friday, April 23, 2021

US Futures Rise After Stocks Are Bruised by Biden's Tax Plan

The market opened today's session with treasuries lower across all maturities. The 10-Year Treasury yield is at 1.5542, 1.62 bps higher than prior closing of 1.5380.
US Futures rose on Friday as investors digested President Biden’s proposal for higher taxes to pay for fiscal stimulus. Contracts on both the S&P 500 Index and Nasdaq 100 posted gains, signaling the U.S. gauges may be set to rebound from sharp declines. Biden plans to nearly double the capital gains rate on the wealthy. Intel Corp., the biggest chipmaker, fell 2.6% in premarket trading following an unexpected drop in gross profit margin. The dollar dipped and Treasury yields steadied. Investors are weighing the implications of higher taxes against the potential spillover benefits of spending on infrastructure. President Joe Biden wants to end the preferential U.S. tax treatment of investment income that has benefited the nation’s wealthy as he seeks to fund a sweeping new social-spending program. The White House plans to propose almost doubling the capital gains tax rate for those earning $1 million or more, to 39.6%. While loose central bank policy is helping support stocks near record highs, these levels look temporary given worsening news regarding further spread of Covid-19 in different parts of the world. European stocks fell, on course for their first weekly decline in eight weeks. Shares of Carnival Plc dropped by 4.4% in London after Morgan Stanley flagged caution on cruise lines. Swedish telecom Telia Co. also declined despite first- quarter results in line with forecasts. Meanwhile, oil prices seem to be headed for a weekly drop of about 2.5% as energy demand wavers with the virus rampant in key parts outside the U.S. Elsewhere, Bitcoin slid below $50,000, headed for its seventh loss in eight days. Investors already face a capital- gains tax if they hold the cryptocurrency for more than a year. The U.S. releases new home sales data later on Friday.  
The curve has bear-steepened with the UST 10-Year yield up 1.62 bps.
This Week's Events
  04/21 MBA Mortgage Applications 04:00 16 Apr - 8.60% -3.70% -  
  04/22 Initial Jobless Claims 05:30 17 Apr 610k 547k 576k 586k  
  04/22 Continuing Claims 05:30 10 Apr 3650k 3674k 3731k 3708k  
  04/22 Leading Index 07:00 Mar 1.00% 1.30% 0.20% -0.10%  
  04/23 Markit US Composite PMI 06:45 Apr P - 62.20 59.70 -  
  04/23 Markit US Services PMI 06:45 Apr P 61.50 63.10 60.40 -  
  04/23 Markit US Manufacturing PMI 06:45 Apr P 61.00 60.60 59.10 -
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
  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.  
© Sun West Mortgage Company, Inc. All Rights Reserved