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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   98-22.5 (-03.5)  
  FN 2.5% Coupon   104-17.5 (-00.5)  
  Support   0.895%  
  Resistance   0.641%  
  Monday, October 19, 2020

Treasury Yields Rise Among Optimism On a New Economic Stimulus Package

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.7756, 3.00 bps increased from prior closing of 0.7456.

Markets were bolstered this morning by optimism that an agreement can be reached on a new stimulus package, despite Covid-19 cases being on the rise worldwide. The U.S. had a fifth consecutive day of surpassing 50,000 new infections, and Italy hit daily records. Speaker of the House Nancy Pelosi has set a Tuesday deadline for an agreement on a new stimulus package but remains optimistic. The latest data indicates that China’s economy is recuperating with a third Quarter GDP growth of 4.9% compared to last year. In the US, tech shares helped the S&P 500 Index advance for the second day in a row. In Europe, Brexit talks between the UK, and the European Union are likely to continue as they try to reach a new trade agreement.  Elsewhere, OPEC is meeting to assess oil market demand amidst a surge virus cases. This week’s economic calendar will provide Housing Starts on Tuesday and MBA Mortgage Applications on Wednesday.

The curve has bear-steepened with UST 10-Year yield up 3.00 bps.
This Week's Events
  10/20 Building Permits 05:30 Sep 1520k - 1470k 1476k  
  10/20 Building Permits MoM 05:30 Sep 3.00% - -0.90% -0.50%  
  10/20 Housing Starts 05:30 Sep 1464k - 1416k -  
  10/20 Housing Starts MoM 05:30 Sep 3.40% - -5.10% -  
  10/21 MBA Mortgage Applications 04:00 16 Oct - - -0.70% -  
  10/22 Initial Jobless Claims 05:30 17 Oct 868k - 898k -  
  10/22 Continuing Claims 05:30 10 Oct 9750k - 10018k -  
  10/22 Bloomberg Consumer Comfort 06:45 18 Oct - - 48.20 -  
  10/22 Leading Index 07:00 Sep 0.60% - 1.20% -  
  10/23 Markit US Services PMI 06:45 Oct P 54.60 - 54.60 -  
  10/23 Markit US Composite PMI 06:45 Oct P - - 54.30 -
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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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