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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.5672%  
  Support   1.7404%  
  Resistance   1.3756%  
  FN 2.5% Coupon   103.781 (+0.03)  
  Tuesday, May 25, 2021
US Stocks Rise As Potential Inflation Concerns Steady
The market opened today's session with treasuries higher across all maturities. The 10-Year Treasury yield is currently at 1.5774, 2.38 bps lower than prior closing of 1.6012.

US stocks slightly increased as positive reassurance from the Federal Reserve led to boosted confidence for investors, underscoring the impacts of potential inflation pressures. The S&P 500 Index saw little to no change with financial, industrial and retail shares leading the slight gains of 0.20%. Similarly, the tech heavy Nasdaq 100 Index rose 0.40%. For the first time this year, consumer confidence dropped as inflation concerns and unemployment continue to elevate. According to the Chicago Fed President Charles Evans, with the pandemic exit coming closer, volatility is to be expected along with all the uncertainties that surround it. The New Home Sales report came out at 863,000, much lower than the expected 950,000. With higher prices restraining demand, traders must now figure out if these price pressures are short-term or if there will be a fundamental change in the economy. On Wednesday, the MBA Mortgage Applications report will be released. On Thursday, the US Initial Jobless Claims report, GDP, durable goods, and other Home Sales reports will be released.

The curve has bull-flattened with UST 10-Year yield down 2.38 bps.
This Week's Events
  05/24 Chicago Fed Nat Activity Index 05:30 Apr 1.20 0.24 1.71 -  
  05/25 FHFA House Price Index MoM 06:00 Mar 1.00% 1.40% 0.90% 1.10%  
  05/25 New Home Sales 07:00 Apr 950k 863k 1021k 917k  
  05/26 MBA Mortgage Applications 04:00 21 May - - 1.20% -  
  05/27 Durable Goods Orders 05:30 Apr P 0.80% - 0.80% -  
  05/27 Initial Jobless Claims 05:30 22 May 425k - 444k -  
  05/27 Continuing Claims 05:30 15 May 3680k - 3751k -  
  05/28 Personal Income 05:30 8 May -14.30% - 21.10% -  
  05/28 Personal  Spending 05:30 Apr 0.50% - 4.20% -  
  05/28 Wholesale Inventories MoM 05:30 Apr P 0.70% - 1.30% -  
  05/28 Retail Inventories MoM 05:30 Apr -2.00% - -1.40% -  
  05/28 University of Michigan Sentiment 07:00 May F 83.00 - 82.80 -
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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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