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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   99-15.5 (-13)  
  FN 2.5% Coupon   105-07 (-02)  
  Support   1.942%  
  Resistance   0.548%  
  Friday, September 4, 2020

Treasury Yields Rise on Better Than Expected Unemployment Figures

Market opened today’s session with treasuries edging lower across all maturities. 10-Year Treasury yield is at 0.6771, 4.24 bps increased from prior closing of 0.6347.

US stocks opened lower as the biggest tech companies continued their slump as traders looked past better-than-forecast jobs reports to focus on concerns about excessive valuations for some of this year's best performers. Losses for, Apple Inc., Microsoft Corp. and Facebook Inc. pushed the tech-heavy Nasdaq 100 to a two-week low a day after that guage's biggest drop since March. Elsewhere European shares slumped as emerging-market stocks fell for a third day. Asian shares dropped with Australia's benchmark recording the biggest decline since May. Gold fell 0.4% to $1,923.60 an ounce while WTI crude fell 2.6% to $40.30. On the economic front, Change in Nonfarm Payrolls beat expectations after reporting an increase of 1.371 million. The Unemployment Rate also reported better than expected after falling to 8.40% in comparison to an expected 9.80%. Together these figures signal progress in the labor market is continuing, albeit at a more moderate pace since the initial bounceback, with payrolls remaining about 11.5 million below pre-pandemic levels. Future advances continue to hinge on whether America improves control of coronavirus infections, as well as ending the stalemate in Congress over another stimulus package. While the figures today bode well in showcasing continued economic improvement, the number of permanent job losers rose by more than half a million to 3.41 million, after being little changed in July. Reporting on the tenth are Initial Jobless Claims and Wholesale Inventories MoM, both expected at 830 thousand and -0.10% respectively.

The curve has bear-steepened with UST 10-Year yield up 4.24 bps.
This Week's Events
  08/31 Dallas Fed Manf. Activity 07:30 Aug 0.00 8.00 -3.00 -  
  09/01 ISM Manufacturing 07:00 Aug 54.80 56.00 54.20 -  
  09/01 ISM Prices Paid 07:00 Aug 54.00 59.50 53.20 -  
  09/01 Construction Spending MoM 07:00 Jul 1.00% 0.10% -0.70% -  
  09/02 MBA Mortgage Applications 04:00 28 Aug - -2.00% -6.50% -  
  09/02 ADP Employment Change 05:15 Aug 1000k 428k 167k 212k  
  09/02 Factory Orders 07:00 Jul 6.10% 6.40% 6.20% 6.40%  
  09/02 Durable Goods Orders 07:00 Jul F 11.20% 11.40% 11.20% -  
  09/02 Durables Ex Transportation 07:00 Jul F 2.40% 2.60% 2.40% -  
  09/03 Initial Jobless Claims 05:30 29 Aug 950k 881k 1006k 1011k  
  09/03 Continuing Claims 05:30 22 Aug 14000k 13254k 14535k 14492k  
  09/03 Trade Balance 05:30 Jul -$58.00b -$63.60b -$50.70b -$53.50b  
  09/03 Bloomberg Consumer Comfort 06:45 30 Aug - 45.10 44.30 -  
  09/03 Markit US Services PMI 06:45 Aug F 54.70 55.00 54.80 -  
  09/03 Markit US Composite PMI 06:45 Aug F - 54.60 54.70 -  
  09/04 Change in Nonfarm Payrolls 05:30 Aug 1350K 1371k 1763K 1734k  
  09/04 Average Hourly Earnings MoM 05:30 Aug 0.00% 0.40% 0.20% 0.10%  
  09/04 Average Hourly Earnings YoY 05:30 Aug 4.50% 4.70% 4.80% 4.70%
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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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