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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.628%  
  Support   1.646%  
  Resistance   1.436%  
  FN 2.5% Coupon   103.45 (+0.02)  
  Friday, May 21, 2021

US Stocks Rise Along With Oil & Economic Optimism

The market opened today's session with treasuries lower across all maturities. The 10-Year Treasury yield is currently at 1.6318, 0.68 bp higher than prior closing of 1.6250.

US stocks rose for a second day as investor optimism grew due to positive earnings reports and strong economic readings. Energy shares climbed, leading the S&P 500 Index higher, with a 0.6% increase. The Nasdaq 100 Index also surged for a third day in a row, rising 0.5%. Similarly, the Stoxx Europe 600 Index saw gains as lockdowns ease. Additionally, oil climbed and treasury yields dropped. After a volatile week for cryptocurrency, Bitcoin finally steadied. The main factors that continue to influence investors’ decisions are global economic recovery, inflation concerns, and coronavirus flare ups in different parts of the world. In terms of the housing market, sales of previously owned US homes dropped unexpectedly in April for a third straight month. This is due to an inventory crunch that not only pushed up prices but also restrained them. Contract closings decreased 2.7% from the prior month to an annualized 5.85 million, the slowest in 10 months, according to Friday data from the National Association of Realtors. In terms of manufacturing,  a measure of output at US manufacturers and service providers advanced to a fresh record in May, underscoring solid demand that’s contributing to added inflationary pressures. Coming up on Friday, Euro-area finance ministers and central bank chiefs will hold an informal meeting. A larger group will meet again on May 22.

The curve has bear-steepened with UST 10-Year yield up 0.68 bp.
This Week's Events
  05/17 Empire Manufacturing 05:30 May 23.90 24.30 26.30 -  
  05/18 Building Permits 05:30 Apr 1770k 1760k 1766k 1755k  
  05/18 Building Permits MoM 05:30 Apr 0.60% 0.30% 2.70% 2.30%  
  05/18 Housing Starts 05:30 Apr 1704k 1569k 1739k 1733k  
  05/18 Housing Starts MoM 05:30 Apr -2.00% -9.50% 19.40% 19.80%  
  05/19 MBA Mortgage Applications 04:00 14 May - 1.20% 2.10% -  
  05/20 Initial Jobless Claims 05:30 15 May 450k 444k 473k 478k  
  05/20 Continuing Claims 05:30 8 May 3620k 3751k 3655k 3640k  
  05/20 Leading Index 07:00 Apr 1.30% 1.60% 1.30% -  
  05/21 Markit US Manufacturing PMI 06:45 May P 60.20 61.50 60.50 -  
  05/21 Markit US Services PMI 06:45 May P 64.30 70.10 64.70 -  
  05/21 Markit US Composite PMI 06:45 May P - 68.10 63.50 -
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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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