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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   99-21 (+00.5)  
  FN 2.5% Coupon   104-28.5 (+03.5)  
  Support   0.780%  
  Resistance   0.611%  
  Tuesday, December 08, 2020

Treasury Yields Rise As Stimulus Talks Continue Stalemate

Market opened today's session with treasuries higher across all maturities. 10-year Treasury yield is at 0.9030, 1.98 bps decreased from prior closing of 0.9228.

US stocks opened lower this morning as stimulus talks once again came into focus. Notable early movers include Tesla Inc., which saw shares fall after indicating a plan to raise $5 billion from capital markets. On the other hand, Pfizer Inc. rose after reports from US regulators indicated the vaccine in question for emergency authorization is highly effective with no safety-issues. A final decision on whether or not the vaccine will be mass-produced will be decided on Thursday by the US Food and Drug Administration. In regards to further stimulus, talks continue to be headlocked, with Senate Majority Leader Mitch McConnell continuing to push for his own plan, even after Democrats retreated from a multi-trillion dollar deal in an effort to reach a bipartisan compromise. Elsewhere, WTI Crude lowered by 0.70% while Gold increased by 0.40%. On the economic front, NFIB Small Business Optimism Index failed to beat expectations after lowering from 104.00 to 101.40 for the month of November. Reporting tomorrow are MBA Mortgage Applications and Wholesale Inventories MoM, the latter of which is expected to remain constant at 0.90%.

The curve has bull-flattened with UST 10-Year yield down 1.98 bps.

This Week's Events
  12/07 Consumer Credit 12:00 Oct 15.500b - 16.214b -  
  12/08 NFIB Small Business Optimism 03:00 Nov 102.50 101.40 104.00    
  12/09 MBA Mortgage Applications 04:00 4 Dec - - -0.60% -  
  12/09 JOLTS Job Openings 07:00 Oct 6300 - 6436 -  
  12/10 CPI MoM 05:30 Nov 0.10% - 0.00% -  
  12/10 CPI YoY 05:30 Nov 1.10% - 1.20% -  
  12/10 CPI Index NSA 05:30 Nov 260.087 - 260.388 -  
  12/10 CPI Core Index SA 05:30 Nov 269.601 - 269.296 -  
  12/10 Initial Jobless Claims 05:30 5 Dec 725k - 712k -  
  12/10 Continuing Claims 05:30 28 Nov 5210k - 5520k -  
  12/10 Bloomberg Consumer Comfort 06:45 6 Dec - - 49.30 -  
  12/11 PPI Final Demand MoM 05:30 Nov 0.10% - 0.30% -  
  12/11 PPI Final Demand YoY 05:30 Nov 0.70% - 0.50% -  
  12/11 U. of Mich. Sentiment 07:00 Dec P 76.00 - 76.90 -
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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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