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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   100-01 (-03)  
  FN 2.5% Coupon   104-19.5 (+00.5)  
  Support   0.787%  
  Resistance   0.614%  
  Wednesday, November 18, 2020

Treasury Yields Rise as The Pandemic Takes Front And Center

Market opened today's session with treasuries slightly lower across all maturities. 10-Year Treasury yield is at 0.8652, 0.82 bp increased from prior closing of 0.8570.

US stocks opened mixed this morning as Pfizer Inc. saw shares climb following a report that its COVID-19 vaccine is 95% effective. Boeing Co. saw shares rise as well after the Federal Aviation Administration cleared the 737 Max to fly once again, following extensive fixes. Elsewhere Bitcoin exceeded $18,000 for the first time since December 2017, meanwhile WTI crude increased by 1.1% and Gold lessened by 0.2%. On the economic front, MBA Mortgage Applications fell by 0.30% for week end Nov 13, after having fallen by 0.50% the week prior. Notably, purchases were up 3.50%, with FHA purchases up by 7.60% after falling by 2.10% the week prior. VA refi's were down by 6.40% while the 30yr fixed rate stood at 2.99%. Housing Starts for the month of October exceeded expectations after reporting at 1.530mm. With record low-rates and limited inventory, residential housing continues to show strong signs of growth for the foreseeable future. Headwinds may come from elevated housing prices and a lack of stimulus from congress, which may derail lower income purchasing power. Reporting tomorrow are Initial Jobless Claims and Existing Home Sales, both expected at 700k and 6.46mm, respectively.

The curve has bear-steepened with UST 10-Year yield up 0.82 bp.
This Week's Events
  11/16 Empire Manufacturing 05:30 Nov 13.50 6.30 10.50 -  
  11/17 Import Price Index MoM 05:30 Oct 0.00% -0.10% 0.30% 0.20%  
  11/17 Import Price Index YoY 05:30 Oct -0.80% -1.00% -1.10% -1.40%  
  11/18 MBA Mortgage Applications 04:00 13 Nov - -0.30% -0.50% -  
  11/18 Building Permits 05:30 Oct 1567k 1545k 1553k 1545k  
  11/18 Building Permits MoM 05:30 Oct 1.40% 0.00% 5.20% 4.70%  
  11/18 Housing Starts 05:30 Oct 1460k 1530k 1415k 1459k  
  11/18 Housing Starts MoM 05:30 Oct 3.20% 4.90% 1.90% 6.30%  
  11/19 Initial Jobless Claims 05:30 14 Nov 700k - 709k -  
  11/19 Continuing Claims 05:30 7 Nov 6400k - 6786k -  
  11/19 Bloomberg Consumer Comfort 06:45 15 Nov - - 48.00 -  
  11/19 Leading Index 07:00 Oct 0.70% - 0.70% -
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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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