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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.510%  
  Support   1.451%  
  Resistance   1.258%  
  FN 2.5% Coupon   103.000 (-0.031)  
     Wednesday, October 06, 2021

Futures And Stocks Continue to Fall Amid Energy Supply Crunch, MBA Mortgage Applications Decline

The Market opened today's session with treasuries higher across all maturities. The 10-year Treasury yield is currently at 1.5171, 0.87 bps lower than the prior closing of 1.5258.

The bond-market sell-off stoked in the U.S market, amid concerns that surging energy costs would induce inflationary pressure to hold on the economies. The yields on 10-year and 30-year U.S Treasuries had both reached the highest since June. U.S. Futures and stocks did trim some losses after a report showing American companies added more jobs than forecast in September but S&P 500 and Nasdaq 100 contracts continued to fall about 0.90% each. Stoxx Europe 600 fell 1.20% as the region’s natural gas prices continued to soar and the European Union sounded the alarm. Markets have turned more volatile in recent weeks, with the energy supply crunch adding to investor worries about inflation, slowing growth, and the prospect of reduced Federal Reserve Stimulus, Government Debt Default, and pandemic related supply chain impacts. Investors are awaiting Friday’s government payrolls report for clues on monetary policy. MBA mortgage applications fell 6.90% last week versus the prior week’s 1.10% drop. The index shows purchases are down 1.70% and refinance down 9.60%. The average 30 year fixed rate rose to 3.14%. Bitcoin rose above $52,000. Oil reached a seven-year high to $78.24 a barrel this week as the crude market tightened.

The curve has bull-flattened with the UST 10-Year yield down 0.87 bps.

This Week's Events
  10/04 Durable Goods Orders 07:00 Aug F 1.80% 1.80% 1.80% -  
  10/04 Durables Ex Transportation 07:00 Aug F 0.20% 0.30% 0.20% -  
  10/05 Markit US Services PMI 06:45 Sep F 54.40 54.90 54.40 -  
  10/05 Markit US Composite PMI 06:45 Sep F - 55.00 54.5 -  
  10/06 MBA Mortgage Applications 04:00 01-Oct - -6.90% -1.10% -  
  10/06 ADP Employment Change 05:15 Sep 430k 568k 374k 340k  
  10/07 Initial Jobless Claims 05:30 02-Oct 348k - 362k -  
  10/07 Continuing Claims 05:30 25-Sep 2765k - 2802k -  
  10/08 Change in Nonfarm Payrolls 05:30 Sep 488k - 235k -  
  10/08 Wholesale Inventories MoM 07:00 Aug F 1.20% - 1.20% -  
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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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