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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   99-00 (+14.5)  
  FN 2.5% Coupon   104-17.5 (+02.5)  
  Support   0.747%  
  Resistance   0.599%  
  Tuesday, October 13, 2020

Treasury Yields and Futures Lower as Earning Reports Take Center Stage

Market opened today's session with treasuries higher across all maturities. 10-year Treasury yield is at 0.7322, 4.15 bps decreased from prior closing of 0.7737.

There were a lot of movements in the stock market as earning reports came into focus. A potential setback in the development of a COVID-19 vaccine had U.S futures and European stocks drifting lower. Johnson & Johnson had to pause their study for a COVID-19 vaccine after one of the volunteers showed signs of an unexplained illness. This led to S&P contracts trading lower. Meanwhile, Black Rock, JP Morgan Chase & Co, and Citigroup are on the rise after their earnings came in higher than expected. Technology Companies are leading the way this morning for the biggest advance in the NASDAQ 100 since April. Expectations are high with tech giant Apple expected to hold a launch for 5G iPhones in addition to Amazon's sales event, Prime Days, which begins today. Elsewhere, oil gained as Chinese crude imports rose last month. Earning reports for Wells Fargo, Bank of America, and Goldman Sachs are due October 14, while Morgan Stanley’s is due on Thursday, October 15. In Washington, the prospects of a fast resolution on an agreement for a new stimulus package seem low as Senate Republicans rejected the White House proposed deal. Also, the Senate Judiciary Committee commenced hearings on the Supreme Court Nomination for Judge Amy Coney Barrett. In Europe, the International Monetary Fund and the World Bank Group’s annual meetings are set to begin, led by European Central Bank President Christine Lagrade. In the U.K. Prime Minister Boris Johnson placed a deadline of Thursday, for an outline of a European Union trade deal. On the Economic Front, the CPI MoM came as expected at 0.20%. MBA Mortgage Applications and PPI Final Demand MoM reports to be released on Wednesday, and Initial Jobless Claims on Thursday.

The curve has bull-flattened with UST 10-Year yield down 4.15 bps.

This Week's Events
  10/13 NFIB Small Business Optimism 03:00 Sep 100.90 104.00 100.20 -  
  10/13 CPI MoM 05:30 Sep 0.20% 0.20% 0.40% -  
  10/13 CPI YoY 05:30 Sep 1.40% 1.40% 1.30% -  
  10/13 CPI Index NSA 05:30 Sep 260.327 260.280 259.918 -  
  10/13 CPI Core Index SA 05:30 Sep 269.341 269.264 268.747 -  
  10/14 MBA Mortgage Applications 04:00 Oct 9 - - 4.60% -  
  10/14 PPI Final Demand MoM 05:30 Sep 0.20% - 0.30% -  
  10/14 PPI Final Demand YoY 05:30 Sep 0.20% - -0.20% -  
  10/15 Initial Jobless Claims 05:30 10 Oct 825k - 840k -  
  10/15 Continuing Claims 05:30 3 Oct 10550k - 10976k -  
  10/15 Bloomberg Consumer Comfort 06:45 11 Oct - - 48.00 -  
  10/16 U. of Mich. Sentiment 07:00 Oct P 80.50 - 80.40 -
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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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