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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   100-08 (+06.5)  
  FN 2.5% Coupon   104-23.5 (+04.5)  
  Support   0.787%  
  Resistance   0.614%  
  Thursday, November 19, 2020

Treasury Yields Fall as Restrictions Increase

Market opened today's session with treasuries higher across all maturities. 10-Year Treasury yield is at 0.8521, 1.80 bps decreased from prior closing of 0.8701.

US stocks opened lower this morning as the pandemic continues to advance globally. Early laggards in the US include Nvidia Corp. following a warning of lower projected data-center chip sales. In Europe, laggards included Norwegian Air Shuttle ASA after seeking protection from creditors, and Thyssenkrupp AG, following news it would cut 11,000 jobs. In regards to the pandemic, NYC has moved to close schools, meanwhile South Australia and Tokyo moved to increase restrictions, with Tokyo daily infections surpassing 500 for the first time. Elsewhere, the Turkish Lira increased as the central bank governor increased the benchmark interest rate. WTI crude declined by 0.6% while gold lessened to $1,890.29 an ounce. On the economic front, Initial Jobless Claims increased more than expected after reporting at 742K for the week end Nov 14. The first increase in five weeks, ongoing state unemployment benefits fell by 429K while the number of individuals claiming extended assistance continued to rise as many exhausted regular state benefits. A record-setting number of COVID-19 infections stands as the biggest hurdle against unemployment, with government restrictions once again bringing business to close across the country. Elsewhere, Existing Home Sales for the month of October increased to 6.85mm. With the median selling price increasing by 15.5%, larger properties and limited demand continue pushing the housing market higher, even as coronavirus cases continue to climb nation-wide, and congress continues to stalemate any possible new stimulus. Reporting tomorrow is US Manufacturing PMI, with expectations set at 52.50.

The curve has bull-flattened with UST 10-Year yield down 1.80 bps.
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 742k 709k 711k  
  11/19 Continuing Claims 05:30 7 Nov 6400k 6372k 6786k 6801k  
  11/19 Bloomberg Consumer Comfort 06:45 15 Nov - 43.00 43.00 -  
  11/19 Leading Index 07:00 Oct 0.70% 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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