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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-09.5 (-06)  
  FN 2.5% Coupon   104-24.5 (+00.5)  
  Support   0.787%  
  Resistance   0.614%  
  Wednesday, December 02, 2020

Treasury Yields Rise as Employment Figures Underwhelm

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.9459, 1.99 bps increased from prior closing of 0.9260.
US stocks opened lower this morning as stimulus hopes came back into focus. Notable movers include Pfizer Inc. following clearance from the UK for emergency usage of its vaccine, with doses to be administered as early as next week. Moderna Inc. saw shares drop following a divestiture by Merck & Co. Stimulus hopes have been revived as House Speaker Nancy Pelosi moved forward with presenting a proposal on Tuesday, with Senate Majority Leader Mitch McConnell contending a revision of his own. Elsewhere, the Yuan erased gains as president-elect Joe Biden stated he had no plans on removing tariffs soon. WTI crude and Gold both rose by 0.10% to $44.60 a barrel and $1,816.81 an ounce, respectively. On the economic front, MBA Mortgage Applications for week end Nov 27, fell by 0.60% after having risen by 3.90% the week prior. Notably, purchases rose by 9.00% while refi's fell by 4.60%, with refi's accounting for 69.50% of loans. The average 30 year fixed rate stood at 2.92%. ADP Employment Change failed to meet expectations for the month of November after reporting at 307K. With COVID cases on the rise and new government restrictions following as a result, the labor market continues to struggle in a weakened state, all the while congress fails to agree on significant fiscal assistance. Reporting tomorrow are Initial Jobless Claims with expectations set at 775K, a slight decrease from the previously reported value of 778K.
The curve has bear-steepened with UST 10-Year yield up 1.99 bps.
This Week's Events
  11/30 Dallas Fed Manf. Activity 07:30 Nov 14.30 12.00 19.80 -  
  12/01 ISM Prices Paid 07:00 Nov 65.00 65.40 65.50 -  
  12/01 Construction Spending MoM 07:00 Oct 0.80% 1.30% 0.30% -0.50%  
  12/02 MBA Mortgage Applications 04:00 27 Nov - -0.60% 3.90% -  
  12/02 ADP Employment Change 05:15 Nov 440k 307k 365k 404k  
  12/03 Initial Jobless Claims 05:30 28 Nov 775k - 778k -  
  12/03 Continuing Claims 05:30 21 Nov 5800k - 6071k -  
  12/03 Bloomberg Consumer Comfort 06:45 29 Nov - - 49.60 -  
  12/03 Markit US Services PMI 06:45 Nov F 57.50 - 57.70 -  
  12/03 Markit US Composite PMI 06:45 Nov F - - 57.90 -  
  12/04 Change in Nonfarm Payrolls 05:30 Nov 486k - 638k -  
  12/04 Average Hourly Earnings MoM 05:30 Nov 0.10% - 0.10% -  
  12/04 Average Hourly Earnings YoY 05:30 Nov 4.20% - 4.50% -  
  12/04 Factory Orders 07:00 Oct 0.80% - 1.10% -  
  12/04 Durable Goods Orders 07:00 Oct F 1.30% - 1.30% -  
  12/04 Durables Ex Transportation 07:00 Oct F 1.30% - 1.30% -
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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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