Back to top

Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-15.5 (+13)  
  FN 2.5% Coupon   105-06.5 (+06.5)  
  Support   1.942%  
  Resistance   0.619%  
  Tuesday, September 8, 2020

Treasury Yields Lower as Stock Market Tumbles

Market opened today’s session with Treasuries higher across all maturities. 10-year Treasury yield is at 0.6690, 4.90 bps decreased from prior closing of 0.7180.

US stocks dropped this morning as volatility continued to grip the financial markets. Oil and gold prices have both declined, while Treasuries rose with the dollar. The NASDAQ 100 fell as much as 4.3% before paring the drop to 2.2% midmorning. It is down almost 9% in three days of selling after its surge from March lows stretched valuations towards levels last seen in the dot-com era. Tesla Inc. tumbled 13% after being snubbed for inclusion in the S&P 500 and is now down more than 20% in September. All 11 S&P 500 groups retreated. WTI crude fell toward $36 a barrel. The speculative fervor that drove huge bullish bets in options markets and saw shares in bankrupt companies surge has broken in September, wiping out trillions in market value. Traders sought the safety of haven assets, pushing Treasury yields lower and strengthening the dollar. The US-China relationship is back in focus after President Donald Trump said he plans to end America's reliance on the country. Trump also threatened to punish any American companies that create jobs overseas, and to forbid those that do business in China from winning federal contracts. In the UK, the pound weakened and stocks slumped after Prime Minister Boris Johnson vowed he "won't back down" over sticking points in Brexit trade talks with the EU. Elsewhere in markets, the Turkish Lira weakened to an all-time low against the dollar for a fourth session amid concern that monetary policy remains too loose to backstop the currency. Equities rose in Asia with shares in Australia and South Korea leading the advance. Important figures coming out this week include Initial Jobless Claims on Thursday, and CPI MoM on Friday. For the upcoming CPI data, Consumer Prices are expected to rise in August for the third straight month.

The curve has bull-flattened with UST 10-Year yield down 4.90 bps.

This Week's Events
  09/08 NFIB Small Business Optimism 03:00 Aug 99.00 100.20 98.80 -  
  09/09 MBA Mortgage Applications 04:00 4 Sep - - -0.20% -  
  09/09 JOLTS Job Openings 07:00 Jul 6000 - 5889 -  
  09/10 PPI Final Demand MoM 05:30 Aug 0.20% - 0.60% -  
  09/10 PPI Final Demand YoY 05:30 Aug -0.30% - -0.40% -  
  09/10 Initial Jobless Claims 05:30 5 Sep 850k - 881k -  
  09/10 Continuing Claims 05:30 29 Aug 12904k - 13254k -  
  09/10 Bloomberg Consumer Comfort 06:45 6 Sep - - 45.10 -  
  09/11 CPI MoM 05:30 Aug 0.30% - 0.60% -  
  09/11 CPI YoY 05:30 Aug 1.20% - 1.00% -  
  09/11 CPI Index NSA 05:30 Aug 259.592 - 259.101 -  
  09/11 CPI Core Index SA 05:30 Aug 268.515 - 267.715 -  
  09/11 Monthly Budget Statement 11:00 Aug -$250.00B - -$63.00B -
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
  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.  
© Sun West Mortgage Company, Inc. All Rights Reserved