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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-14.5 (-03.5)  
  FN 2.5% Coupon   104-20.5 (00)  
  Support   1.942%  
  Resistance   0.619%  
  Wednesday, September 23, 2020

Stock Futures Rose in Europe while political and health issues bring uncertainty in the US

Market opened today’s session with Treasuries lower across all maturities. 10-Year Treasury yield is at 0.676, 0.05 bp increased from prior closing of 0.671.

There was positive momentum building in European markets as stock futures rose rebounding from the September sell-off. Premarket, Johnson & Johnson stock rose with the news that they are ready to start clinical trials on a Covid-19 vaccine that only requires one shot. Cyclical stocks drew interests, leading the Dow Jones Industrial Average contracts to outperform the S&P 500 and Nasdaq 100. The value of Gold went down below $1,900 an ounce and oil is hovering around $40. The US government passed a stopgap funding bill to avoid a shutdown effective till December 11th. The FDA is set to announces stricter standards for a Covid vaccine, presenting a larger hurdle for cures to hit the market ahead of US elections. Treasuries continue to be range bound as Federal Reserve policy makers continue discussions in Washington. All eyes are on congress to agree on additional support as employment and overall activity are still back of pre-covid levels. In economic news MBA Mortgage Applications for the week ending Sept 18 rose to 6.80% from a prior print of -2.50%. US Manufacturing PMI was in line with expectations at 53.50.

The curve has bear-steepened with UST 10-Year yield up 0.05 bp.
This Week's Events
  09/21 Chicago Fed Nat Activity Index 05:30 Aug 1.19 0.79 1.18 2.54  
  09/22 Existing Home Sales 07:00 Aug 6.00m 6.00m 5.86m -  
  09/22 Existing Home Sales MoM 07:00 Aug 2.40% 2.40% 24.70% -  
  09/23 MBA Mortgage Applications 04:00 18 Sep - 6.80% -2.50% -  
  09/23 FHFA House Price Index MoM 06:00 Jul 0.50% 1.00% 0.90% 1.00%  
  09/23 Markit US Services PMI 06:45 Sep P 54.70 54.60 55.00 -  
  09/23 Markit US Composite PMI 06:45 Sep P - 54.40 54.60 -  
  09/24 Initial Jobless Claims 05:30 19 Sep 840k - 860k -  
  09/24 Continuing Claims 05:30 12 Sep 12350k - 12628k -  
  09/24 Bloomberg Consumer Comfort 06:45 20 Sep - - 47.70 -  
  09/25 Durable Goods Orders 05:30 Aug P 1.20% - 11.40% -  
  09/25 Durables Ex Transportation 05:30 Aug P 1.10% - 2.60% -
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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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