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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   102-03.5 (+02)  
  FN 3.5% Coupon   102-01 (+02)  
  Support   3.237%  
  Resistance   1.939%  
Friday, July 12, 2019
Treasury Yields Steady, U.S. Stock Futures Advance
Market opened today’s session with treasuries relatively flat from prior close. The 10-Year Treasury yield is currently at 2.128 after closing at 2.139 prior.

Treasuries steadily declined throughout yesterday’s session after U.S. inflation data printed better than expected, pushing the 10-Year yield close to a one-month high. Despite yesterday’s strong inflation data, Fed Chairman Powell’s dovish comments earlier this week continue to headline the rally in riskier assets. U.S. Stock Futures climbed overnight as investors remain cautiously optimistic on a Fed rate cut later this month. Meanwhile, the impact of trade tensions remains a global concern after weak data from China continued to show a decline in trade volume. In commodities, oil rose as operators in the Gulf of Mexico braced for Tropical Storm Barry with nearly 20% of U.S. oil refining capacity potentially in its path.

On the economic calendar, we received the producer prices for June reflecting that the PPI Final Demand rose 0.10% MoM following a similar gain prior; consensus called for the index to remain unchanged at 0.00%. Excluding food and energy, the producer price index also rose better than expected at 0.30% versus a 0.20% increase per consensus. The PPI Final Demand year-over-year ticked slightly lower from its prior mark of 1.80% down to 1.70%, while PPI excluding food and energy remained at 2.30% YoY. In Fedspeak, Chicago Fed President Evans will speak later this morning on trade and economy in Chicago.

The curve has bull-flattened with the UST 10-Year yield down 1.1 bps from prior closing.
This Week's Events
  07/08 Consumer Credit 12:00 May $17.000b - $17.497b -  
  07/09 NFIB Small Business Optimism 03:00 Jun 103.10 103.30 105.00 -  
  07/09 JOLTS Job Openings 07:00 May 7470 7323 7449 7372  
  07/10 MBA Mortgage Applications 04:00 5 Jul - -2.40% -0.10% -  
  07/10 Wholesale Trade Sales MoM 07:00 May 0.30% 0.10% -0.40% -  
  07/10 Wholesale Inventories MoM 04:00 May F 0.40% 0.40% 0.40% -  
  07/10 FOMC Meeting Minutes 11:00 19 Jun - - - -  
  07/11 CPI MoM 05:30 Jun 0.00% 0.10% 0.10% -  
  07/11 CPI YoY 05:30 Jun 1.60% 1.60% 1.80% -  
  07/11 Initial Jobless Claims 05:30 6 Jul 221k 209k 221k 222k  
  07/11 Continuing Claims 05:30 29 Jun 1683k 1723k 1686k 1696k  
  07/11 Bloomberg Consumer Comfort 06:45 7 Jul - 63.80 62.60 -  
  07/11 Monthly Budget Statement 11:00 Jun -$7.90b - -$74.90b -  
  07/12 PPI Final Demand MoM 05:30 Jun 0.00% 0.10% 0.10% -  
  07/12 PPI Final Demand YoY 05:30 Jun 1.60% 1.70% 1.80% -
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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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