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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-18 (+03)  
  FN 2.5% Coupon   104-26.5 (-03)  
  Support   1.942%  
  Resistance   0.619%  
  Wednesday, September 16, 2020

Treasury Yields Slightly Lower Ahead of Fed Meeting

Market opened today's session with treasuries slightly higher across all maturities. 10-Year Treasury yield is at 0.669, 0.98 bp decreased from prior closing of 0.679.

US markets opened higher this morning as the dollar fell ahead of today's Fed meeting. Today's gains were led by energy producers and banks. The Dow Jones Transportation is near all-time highs as FedEx Corp. outperformed earnings estimates on the back of strong demand from ecommerce. Eastman Kodak Co. also outperformed as they were absolved of the previously reported mishandling of options awards for its CEO. Today marks the last Fed meeting prior to elections, with expectations set for rates to remain near zero through 2023. Elsewhere WTI increased by 2.7% and Gold strengthened by to 0.7% showing at $1968.62 an ounce. On the economic front, MBA Mortgage Applications fell by 2.50% for the week ending September 11. This comes after applications had risen by 2.90% the week prior. Refi's fell by 3.70% while purchases were down 0.50%. The average 30-year fixed rate stood at 3.07%. Elsewhere, Retail Sales grew by 0.60% for the month of August. The slow down in growth comes as the Payment Protection Program ended in early August, despite continued stresses on small businesses from the Covid pandemic. The FOMC rate decision will be reported later today at 11:00 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 0.98 bp.
This Week's Events
  09/15 Empire Manufacturing 05:30 Sep 6.90 17.00 3.70 -  
  09/15 Import Price Index MoM 05:30 Aug 0.50% 0.90% 0.70% 1.20%  
  09/15 Import Price Index YoY 05:30 Aug -2.10% -1.40% -3.30% -2.80%  
  09/16 MBA Mortgage Applications 04:00 11 Sep - -2.50% 2.90% -  
  09/17 Housing Starts 05:30 Aug 1483k - 1496k -  
  09/17 Housing Starts MoM 05:30 Aug -0.90% - 22.60% -  
  09/17 Building Permits 05:30 Aug 1517k - 1495k 1483k  
  09/17 Building Permits MoM 05:30 Aug 2.30% - 18.80% 17.90%  
  09/17 Initial Jobless Claims 05:30 12 Sep 850k - 884k -  
  09/17 Continuing Claims 05:30 5 Sep 13000k - 13385k -  
  09/17 Bloomberg Consumer Comfort 06:45 13 Sep - - 47.80 -  
  09/18 Leading Index 07:00 Aug 1.30% - 1.40% -  
  09/18 U. of Mich. Sentiment 07:00 Sep P 75.00 - 74.10 -
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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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