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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-15 (-09)  
  FN 2.5% Coupon   103-26 (-00.5)  
  Support   2.138%  
  Resistance   0.635%  
  Monday, June 15, 2020

Treasury Yields Lower on Virus Fears

Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 0.6854, 1.80 bps decreased from prior closing of 0.7034.

US stocks fell sharply this morning as investors struggled with signs of a second wave of coronavirus cases emerging. States in the reopening process including Alabama, California, Florida and North Carolina are reporting a rise in daily new coronavirus cases. China also reported its largest daily increase in coronavirus cases since mid-April, with infections concentrated around Beijing's biggest fruit and vegetable supply center. Treasuries rallied and the dollar strengthened against most of its major peers. WTI crude, on the other hand, slumped this morning as BP Plc warned the pandemic will hurt long term energy demand, trading around $35 a barrel. In the economic calendar, Empire Manufacturing index in June jumped by the most in records back to 2001, adding to signs of economic stability. The index advanced to -0.20 from prior reading of -48.50 vs. -29.60 consensus. There are a few events that investors will focus on this week; the Bank of Japan, Bank of England and the Swiss National Bank will release their policy decisions, and Fed Chair Powell will deliver his semi-annual policy report to Congress.

The curve has bull-flattened with UST 10-Year yield down 1.80 bps.
This Week's Events
  06/15 Empire Manufacturing 05:30 Jun -29.60 -0.20 -48.50 -  
  06/15 Net Long-term TIC Flows 13:00 Apr - - $112.60B -  
  06/15 Total Net TIC Flows 13:00 Apr - - $349.90B -  
  06/16 Retail Sales Advance MoM 05:30 May 8.00% - -16.40% -  
  06/16 Capacity Utilization 06:15 May 66.90% - 64.90% -  
  06/17 MBA Mortgage Applications 04:00 12 Jun - - 9.30% -  
  06/17 Housing Starts 05:30 May 1100k - 891k -  
  06/17 Housing Starts MoM 05:30 May 23.50% - -30.20% -  
  06/17 Building Permits 05:30 May 1250k - 1074k 1066k  
  06/17 Building Permits MoM 05:30 May -17.30% - -20.80% -21.40%  
  06/18 Philadelphia Fed Business Outlook 05:30 Jun -25.00 - -43.10 -  
  06/18 Initial Jobless Claims 05:30 13 Jun 1290k - 1542k -  
  06/18 Continuing Claims 05:30 6 Jun 19900k - 20929k -  
  06/18 Bloomberg Consumer Comfort 06:45 14 Jun - - 38.70 -  
  06/18 Leading Index 07:00 May 2.30% - -4.40% -
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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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