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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-11 (+05.5)  
  FN 3.5% Coupon   102-22 (-0.5)  
  Support   3.237%  
  Resistance   1.610%  
Friday, August 09, 2019
Treasury Yields Lower on Trade Concerns
Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 1.7018, 1.54 bps decreased from prior closing of 1.7172.

US stock futures fell over lingering trade tensions with China. It was reported overnight that the US is delaying licensing decision for American companies to use Huawei products, adding to the ongoing tit-for-tat escalations between the two countries. Chipmakers retreated on the news and the offshore yuan weakened versus the greenback. As the dragging trade escalations continue, investors are struggling to gauge corporate profits, interest rates, and economic growth, leaving them in risk-off mode. Stocks have had a very volatile week with the indexes recording their biggest one-day sell-off of the year on Monday and wiping out those losses for three days which came to a halt this morning. Elsewhere, WTI crude gained this morning, however, still being down for the week. PPI Final Demand in July came in line with consensus of 0.20%, a 0.10% increase from prior, and lastly, the core, however, slipped to -0.10% from 0.30% prior vs. 0.10% consensus.

The curve has bull-flattened with UST 10-Year yield down 1.54 bps.
This Week's Events
  08/05 Markit US Services PMI 06:45 Jul F 52.20 53.00 52.20 -  
  08/05 Markit US Composite PMI 06:45 Jul F - 52.60 51.60 -  
  08/06 JOLTS Job Openings 07:00 Jun 7326 7348 7323 7384  
  08/07 MBA Mortgage Applications 04:00 2 Aug - 5.30% -1.40% -  
  08/08 Initial Jobless Claims 05:30 3 Aug 215k 209k 215k 217k  
  08/08 Continuing Claims 05:30 27 Jul 1690k 1684 1699k -  
  08/08 Bloomberg Consumer Comfort 06:45 4 Aug - 62.90 64.70 -  
  08/08 Wholesale Inventories MoM 07:00 Jun F 0.20% 0.00% 0.20% -  
  08/09 PPI Final Demand MoM 05:30 Jul 0.20% 0.20% 0.10% -  
  08/09 PPI Final Demand YoY 05:30 Jul 1.70% 1.70% 1.70% -
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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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