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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   99-10 (-08)  
  FN 2.5% Coupon   104-30.5 (+00.5)  
  Support   0.780%  
  Resistance   0.611%  
  Wednesday, December 09, 2020

Treasury Yields Rise on Renewed Stimulus Hopes

Market opened today's session with treasuries lower across all maturities. 10-year Treasury yield is at 0.9444, 2.65 bps increased from prior closing of 0.9179.

US stocks opened higher this morning as hopes for a new stimulus deal were reinvigorated. The S&P 500 advanced towards a new record high with shares of small-cap and travel companies rallying. Notable movers include Tesla Inc., which saw shares fall following a report from JPMorgan & Chase stating the company was significantly overvalued. GameStop Corp. also saw shares fall after missing on sales estimates. In regards to stimulus talks, Treasury Secretary Steven Mnuchin introduced a $916 billion relief package, reigniting talks which continued to be in gridlock as Democrats and Republicans alike seeked to include further relief in a new government-spending bill. In Europe, the pound gained ahead of a decisive Brexit meeting between British Prime Minister Boris Johnson and European Commissioner Ursula von der Leyen. Elsewhere, WTI Crude advanced by 0.70% while Gold lowered by 0.80% to $1,855.01 an ounce. On the economic front, MBA Mortgage applications fell by 1.20% for the week ending December 4. Notably, purchases and refis were both down 5.00% and 1.80%, respectively, with refi's accounting for 72.00% of loans. The average 30-yr Fixed Rate stood at 2.90%. Wholesale Inventories MoM for the month of October beat expectations after reporting at 1.10%. Notably, wholesale sales increased by 1.80% in October while the inventory / sales ratio stood at 1.31.  Reporting tomorrow are Initial Jobless Claims and CPI MoM, both expected at 725K and 0.10%, respectively.

The curve has bear-steepened with UST 10-Year yield up 2.65 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 - -1.20% -0.60% -  
  12/09 JOLTS Job Openings 07:00 Oct 6300 6652 6436 6494  
  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 269.570 - 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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