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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   100-10 (00)  
  FN 2.5% Coupon   104-22.5 (-03.5)  
  Support   0.787%  
  Resistance   0.614%  
  Friday, November 20, 2020

Treasury Yields Rise as The US Fed & Treasury Clash

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.8423, 1.30 bps increased from prior closing of 0.8293.

US stocks opened lower this morning as Treasury Secretary Steven Mnuchin moved to recall unused funds from emergency lending programs, a move strongly opposed by Federal Reserve Chair Jerome Powell. With further stimulus packages deadlocked in congress, emergency relief programs could once again be renewed through a Biden administration via the Exchange Stabilization Fund. In regard to equities, Pfizer Inc. recorded early gains as the company filed for emergency approval of its COVID-19 vaccine, with the EU reportedly willing to pay $10 billion for virus shots. This transaction would price each vaccine dose at $18.34. Gilead Sciences Inc. saw declines following a statement from the World Health Organization recommending individuals not to use remdesivir, a move declared less than a month after the drug had been granted speedy approval in the US. Elsewhere, WTI Crude dropped by 0.5% while Gold advanced by 0.6% to $1,877.92 an ounce. Reporting next week on Monday is the Markit US Manufacturing PMI, with expectations set at 53.00, a slight decrease from the prior reported value of 53.40.

The curve has bear-steepened with UST 10-Year yield up 1.30 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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