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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   99-18.5 (+02.5)  
  FN 2.5% Coupon   104-11.5 (+03)  
  Support   2.138%  
  Resistance   0.620%  
  Tuesday, July 7, 2020

Treasury Yields Drift as Stocks Sell-Off Globally

Market opened today’s session with treasuries nearly unchanged across all maturities. 10-Year Treasury yield is at 0.6759, flat from prior closing of 0.6759.

Stocks sold-off globally, led by companies dependent on the economy reopening performing poorly. Hotels, airlines, and cruise lines fell this morning, but tech shares outperformed, sending the tech-heavy Nasdaq 100 higher. European shares fell after the European Commission cut its growth projections for the euro area further, with its latest forecasts now predicting an 8.7% contraction this year. The trouble caused by the slower-than-expected emergence from lockdowns was shown in German industrial production numbers this morning which grew at a slower pace than expected. Treasuries gained and the dollar also edged higher. Elsewhere, WTI crude fell toward $40 a barrel. We only have one economic data released this morning; JOLTS Job Openings which unexpectedly increased in May to 5.397 million from a downwardly revised prior of 4.996 million vs. 4.5 million consensus as the economy reopening helped businesses to hire anew. The number of hires which includes rehired employees surged a record 2.44 million to an all-time high of 6.5 million.

The curve has not changed with UST 10-Year yield remaining the same from the prior.
This Week's Events
  07/06 Markit US Services PMI 06:45 Jun F 46.90 47.90 46.70 -  
  07/06 Markit US Composite PMI 06:45 Jun F - 47.90 46.80 -  
  07/07 JOLTS Job Openings 07:00 May 4500 5397 5046 4996  
  07/08 MBA Mortgage Applications 04:00 3 Jul - - -1.80% -  
  07/09 Initial Jobless Claims 05:30 4 Jul 1375K - 1427K -  
  07/09 Continuing Claims 05:30 27 Jun 18750K - 19290K -  
  07/09 Bloomberg Consumer Comfort 06:45 5 Jul - - 43.30 -  
  07/10 PPI Final Demand MoM 05:30 Jun 0.40% - 0.40% -  
  07/10 PPI Final Demand YoY 05:30 Jun -0.20% - -0.80% -
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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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