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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   99-28.5 (+04)  
  FN 3.5% Coupon   102-21.5 (+00.5)  
  Support   3.069%  
  Resistance   1.668%  
  Friday, November 22, 2019

Treasury Yields Remain Nearly Unchanged on Economic Data

Market opened today’s session with treasuries drifting across all maturities. 10-Year Treasury yield is at 1.7723, unchanged from prior closing of 1.7723.

US equity futures edged higher, setting to end the three day losing streak as investors digested the comment from President Trump on a partial trade deal with China. President Trump indicated in an interview that a deal was very close, and there’s a very good chance to make the deal. His comments came after his Chinese counterpart Xi said Beijing wanted to work toward a phase-one deal on the “basis of mutual respect and equality” which was his first comment on a partial deal. He also added China would fight back if necessary. His latter comment was underscored as President Trump is expected to sign a bill supporting Hong Kong protesters into law which is likely to anger China. In the euro area, while Germany reported better-than-expected readings in manufacturing sector, the purchasing managers data for the area disappointed, indicating continued stagnation in their economy. Elsewhere, WTI crude edged lower after reaching a nine-week high, trading below $58.50 a barrel.

Despite the mixed bag of economic data in Europe, PMI readings in the US showed improvements across the board. Markit US Services PMI printed 51.60 vs. 51.00 consensus and 50.60 prior, and Manfacturing PMI rose to 52.20 from 51.30 prior vs. 51.40 consensus. The Composite PMI also moved higher to 51.90 from a prior reading of 50.90. Lastly, University of Michigan Sentiment edged higher to 96.80 from 95.70 prior. Treasuries erased gains from earlier this morning on the data release.

The curve has flattened with UST 10-Year yield unchanged.
This Week's Events
  11/18 NAHB Housing Market Index 07:00 Nov 71.00 70.00 71.00 -  
  11/18 Net Long-term TIC Flows 13:00 Sep - $49.50b -$41.10b -$41.20b  
  11/18 Total Net TIC Flows 13:00 Sep - -$37.60b $70.50b $41.90b  
  11/19 Housing Starts 05:30 Oct 1320k 1314k 1256k 1266k  
  11/19 Housing Starts MoM 05:30 Oct 5.10% 3.80% -9.40% -7.90%  
  11/19 Building Permits 05:30 Oct 1385k 1461k 1387k 1391k  
  11/19 Building Permits MoM 05:30 Oct -0.40% 5.00% -2.70% -2.40%  
  11/20 MBA Mortgage Applications 04:00 15 Nov - -2.20% 9.60% -  
  11/21 Philadelphia Fed Business Outlook 05:30 Nov 6.00 10.40 5.60 -  
  11/21 Initial Jobless Claims 05:30 16 Nov 218k 227k 225k 227k  
  11/21 Continuing Claims 05:30 9 Nov 1683k 1695k 1683k 1692k  
  11/21 Bloomberg Consumer Comfort 06:45 17 Nov - 59.10 58.00 -  
  11/21 Leading Index 07:00 Oct -0.10% -0.10% -0.10% -0.20%  
  11/21 Existing Home Sales 07:00 Oct 5.49m 5.46m 5.38m 5.36m  
  11/21 Existing Home Sales MoM 07:00 Oct 2.00% 1.90% -2.20% -2.50%  
  11/22 Markit US Manufacturing PMI 06:45 Nov P 51.40 52.20 51.30 -  
  11/22 Markit US Services PMI 06:45 Nov P 51.00 51.60 50.60 -  
  11/22 Markit US Composite PMI 06:45 Nov P - 51.90 50.90 -  
  11/22 U. of Mich. Sentiment 07:00 Nov F 95.70 96.80 95.70 -  
  11/22 Kansas City Fed Manf. Activity 08:00 Nov -2.00 - -3.00 -
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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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