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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-06.5 (+02)  
  FN 3.5% Coupon   99-02.5 (+01.5)  
  Support   3.111%  
  Resistance   2.813%  
Wednesday, August 08, 2018
Treasuries are marginally higher across the curve this morning from yesterday's close. The UST 10-Year yield is currently at 2.963% after closing at 2.974% prior.

Treasuries inched higher as global trade tensions surrounding U.S. and China escalated further with more tariffs imposition on the way. U.S. announced that it will impose 25 percent duties on another $16 Billion in Chinese imports two weeks from now, and China responded that it is again set to retaliate. The dollar rose on the trade war news, while U.S. Stocks fluctuated overnight. Later today at 10:00 AM (PT), U.S. will hold its biggest 10-Year Notes auction, selling $26 Billion which surpasses its previous record auction of $25 Billion set in 2009.

With another light economic calendar day, we received the MBA Mortgage Applications for the week ended August 3 which fell 3.00% following a 2.60% drop in activities the week prior. Purchase applications dropped 2.00% after falling 3.1% the week prior, while refinance applications fell 4.50% to its lowest level since December of 2000. This marks the fourth consecutive week that mortgage applications declined. Still ahead this week, the U.S. consumer prices for July will be released on Friday and is expected to reflect a month-over-month increase from June.

The curve has bull-flattened with the UST 10-Year yield down 1.1 bps from prior closing.
This Week's Events
  08/06 No Data - - - - - -  
  08/07 JOLTS Job Openings 07:00 Jun 6625 6662 6638 6659  
  08/08 MBA Mortgage Applications 04:00 3 Aug - -3.00% -2.60% -  
  08/09 Initial Jobless Claims 05:30 4 Aug 220k - 218k -  
  08/09 Continuing Claims 05:30 28 Jul 1730k - 1724k -  
  08/09 PPI Final Demand MoM 05:30 Jul 0.20% - 0.30% -  
  08/09 PPI Final Demand YoY 05:30 Jul 3.40% - 3.40% -  
  08/09 Bloomberg Consumer Comfort 06:45 5 Aug - - 58.60 -  
  08/09 Wholesale Inventories MoM 07:00 Jun F 0.00% - 0.00% -  
  08/09 Wholesale Trade Sales MoM 07:00 Jun 0.20% - 2.50% -  
  08/10 CPI MoM 05:30 Jul 0.20% - 0.10% -  
  08/10 CPI YoY 05:30 Jul 2.90% - 2.90% -  
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  This information is provided solely for informational use and is not intended as trading or investment advice 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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