Back to top

Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   98-21 (-02.5)  
  FN 3.5% Coupon   102-12.5 (+0.5)  
  Support   3.237%  
  Resistance   1.529%  
Friday, October 25, 2019
Treasury Yields Decline: New Testimony in Impeachment Inquiry
Market opened today’s session with treasuries rallying across all maturities. The 10-Year Treasury yield is currently at 1.7644, 0.16 bps decreased from prior closing of 1.7660.

Amazon posted its third-quarter results sending the stock down more than 4.00%. The Dow Jones Industrial Average opened 34 points lower, or 0.20%. The S&P 500 pulled back 0.20% while the Nasdaq Composite dropped 0.40%. Visa posted revenue and profit that topped estimates, but the stock slid 1.00%. Verizon, meanwhile, dipped 1.40% on earnings. More than 38.00% of S&P 500 companies posted quarter earnings for the third quarter. The major averages were headed for weekly gains through Thursday’s close. Lawyers for former national security advisor John Bolton have been in touch with officials working on House committees conducting an impeachment probe into President Donald Trump. The impeachment probe is focused on pressure by Trump and his emissaries on Ukraine to investigate former Vice President Joe Biden and his son Hunter Biden. Trump also wanted Ukraine to investigate a conspiracy theory that the country helped cover up evidence related to hacking of a Democratic National Committee computer server in the 2016 U.S. presidential election, and played a role in news stories that led to the resignation and eventual prosecution of Trump’s then-campaign chairman Paul Manafort in 2016. The Dow was up 0.10% for the week entering Friday’s session. Meanwhile, the S&P 500 and Nasdaq were up 0.80% and 1.20%, respectively. The yield on 10-Year Treasuries slid one basis point to 1.76%. Germanys 10-Year yield rose two basis points to -0.38%. Britains 10-Year yield climbed three basis points to 0.655%. The US Treasury will auction $45 billion in three-month bills, and $42 billion in six-month bills on October 28th.

Consumer sentiment hit 95.50 in October, just below the Street estimate of 96.00. In September, consumer sentiment rose to 93.20, a major rebound from August when sentiment fell the most since 2012 amid an escalating trade war between the U.S. and China. The US suspended a planned tariff hike on $250 billion worth of goods due to progress in trade negotiations. However, a 15.00% tariff is still set to take effect on December 15th, right in the midst of the holiday shopping season. A senior government official appointed by Education Secretary Betsy DeVos resigns, saying the student loan system is “broken” and calling for billions of dollars in debt to be forgiven. Half of student loan borrowers haven’t paid even $1 toward their debt’s principal, according to the Education Department’s own data. And 40.00% of student loan borrowers could default by 2023, according to an analysis by the Brookings Institution.

The curve has bull-flattened with the UST 10-Year yield down 0.16 bps from prior closing.
This Week's Events
  10/21 No Data - - - - - -  
  10/22 Richmond Fed ManufactIndex 07:00 Oct -7.00 8.00 -9.00 -  
  10/22 Existing Home Sales 07:00 Sep 5.45m 5.38m 5.49m 5.50m  
  10/22 Existing Home Sales MoM 07:00 Sep -0.70% -2.20% 1.30% 1.50%  
  10/23 MBA Mortgage Applications 04:00 18 Oct - -11.90% 0.50% -  
  10/23 FHFA House Price Index MoM 06:00 Aug 0.30% 0.20% 0.40% -  
  10/24 Initial Jobless Claims 05:30 19 Oct 215k 212k 214k 218k  
  10/24 Continuing Claims 05:30 12 Oct 1678k 1682k 1679k 1683k  
  10/24 Durable Goods Orders 05:30 Sep P -0.70% -1.10% 0.20% 0.30%  
  10/24 Durables Ex Transportation 05:30 Sep P -0.20% -0.30% 0.50% 0.30%  
  10/24 Bloomberg Consumer Comfort 06:45 20 Oct - - 63.50 -  
  10/24 Markit US Manufacturing PMI 06:45 Oct P 50.90 - 51.10 -  
  10/24 Markit US Services PMI 06:45 Oct P 51.00 - 50.90 -  
  10/24 Markit US Composite PMI 06:45 Oct P - - 51.00 -  
  10/24 New Home Sales 07:00 Sep 702k - 713k -  
  10/24 New Home Sales MoM 07:00 Sep -1.60% - 7.10% -  
  10/24 Kansas City Fed ManfActivity 08:00 Oct -3.00 - -2.00 -  
  10/25 U. of Mich. Sentiment 07:00 Oct F 96.00 95.50 96.00 -
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
  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.  
©2021 Sun West Mortgage Company, Inc. All Rights Reserved