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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   1.501%  
  Support   1.688%  
  Resistance   1.570%  
  FN 2.5% Coupon   104-14 (-03+)  
  Monday, June 14, 2021

US Stocks Fall as Rally in Bond Markets Loses Steam; Bitcoin Gains

The Market opened today's session with treasuries lower across all maturities. The 10-year Treasury yield is currently at 1.4940, 4.22 bps higher than prior closing of 1.4518.

US stocks opened mostly lower this week and the rally in bond markets lost steam as investors are preparing for a key Federal Reserve meeting later this week. The S&P 500 Index fell 0.10% after the gauge hit a record Friday. Similarly, the tech-heavy Nasdaq 100 Index fell 0.2% while the European Stoxx 600 rose 0.10% to a record high. Novavax rose after data showed its vaccine candidate was 90% effective against the virus, while Moderna dropped. Bitcoin climbed after billionaire Paul Tudor Jones reiterated his support to cryptocurrencies. Elon Musk also announced that Tesla would resume transactions with Bitcoin once crypto mining is done with more clean energy. Oil extended a run of three weekly gains on optimism that economic reopenings will boost summer demand in the US and Europe. Hedge funds boosted net-bullish positions to a nearly three-year high, according to the latest Commodity Futures Trading Commission data. During this week there will be a lot of events to keep an eye on. On Monday, NATO is holding a summit. On Tuesday, another summit involving the US and EU will take place along with US data being released regarding industrial production, producer prices and retail sales. On Wednesday, the Federal Open Market Committee comes out with rate decisions and President Biden meets with Vladimir Putin on Wednesday. On Thursday, US Treasury Secretary Janet Yellen will testify before a House Panel on the federal budget.

The curve has bear-steepened with the UST 10-Year yield up 4.22 bps.

This Week's Events
  06/15 Empire Manufacturing 05:30 Jun 22.50 - 24.30 -  
  06/16 Building Permits 05:30 May 1730k - 1760k 1733k  
  06/16 Building Permits MoM 05:30 May -0.20% - 0.30% -1.30%  
  06/16 Housing Starts 05:30 May 1630k - 1569k -  
  06/16 Housing Starts MoM 05:30 May 3.90% - -9.50% -  
  06/16 MBA Mortgage Applications 05:30 Jun 11 - - -3.10% -  
  06/17 Initial Jobless Claims 05:30 Jun 12 370k - 385k -  
  06/17 Continuing Claims 05:30 Jun 5 3650k - 3771k -  
  06/17 Leading Index 07:00 May 1.30% - 1.60% -
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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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