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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.589%  
  Support   1.658%  
  Resistance   1.474%  
  FN 2.5% Coupon   103.547 (+0.031)  
  Friday, May 28, 2021
US Stocks Extend Monthly Rally; Household Spending Growth Moderates
The market opened today's session with treasuries higher across all maturities. The 10-Year Treasury yield is currently at 1.5960, 1.02 bps lower than prior closing of 1.6062.

US stocks rose as investors focused on economic growth over inflation concerns, as personal consumption expenditures had its biggest monthly increase since 2001. The S&P 500 Index extended its advance, gaining 0.3%, remaining on course to complete a four-month consecutive rally, which would be its longest run since August. The tech-heavy Nasdaq 100 Index also saw gains with a 0.4% increase., the top maker of cloud-based customer relations software, climbed on a better-than-expected profit forecast, while Boeing fell after halting deliveries of its 787 Dreamliner. AMC Entertainment Holdings soared, adding to a week that’s already doubled the value of the movie-theater company, and Coinbase Global paced a sell-off in crypto shares as Bitcoin slumped. The Commerce Department released US household spending and trade of goods reports. A $7.2 billion trade deficit of goods was present during the month of April. Additionally, imports fell 2.20% while exports rose 1.20%. In terms of US personal spending, the month of April saw a moderate yet steady pace after a stimulus-fueled binge was present a month earlier. Purchases of goods and services increased 0.50% while personal consumption expenditures increased 0.70%. 

The curve has bull-flattened with UST 10-Year yield down 1.02 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 - -4.20% 1.20% -  
  05/27 Durable Goods Orders 05:30 Apr P 0.80% -1.30% 0.80% 1.30%  
  05/27 Initial Jobless Claims 05:30 22 May 425k 406k 444k -  
  05/27 Continuing Claims 05:30 15 May 3680k 3642k 3751k 3738k  
  05/28 Personal Income 05:30 8 May -14.20% -13.10% 21.10% 20.90%  
  05/28 Personal  Spending 05:30 Apr 0.50% 0.50% 4.20% 4.70%  
  05/28 Wholesale Inventories MoM 05:30 Apr P 0.70% 0.80% 1.30% 1.10%  
  05/28 Retail Inventories MoM 05:30 Apr -1.20% -1.60% -1.40% -  
  05/28 University of Michigan Sentiment 07:00 May F 83.00 82.90 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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