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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   98-14 (-01.5)  
  FN 3.5% Coupon   102-21 (-01.5)  
  Support   2.808%  
  Resistance   1.697%  
  Monday, December 23, 2019

Treasuries Nearly Unchanged, U.S. Index Futures Advance

Market opened today’s session with treasuries relatively flat from prior close. The 10-Year Treasury yield is currently at 1.913 after closing at 1.918 prior.

Investor's nerves look to remain calm ahead of the year end as trade tensions continue to ease. Contracts on all three major U.S. indices pointed to a strong opening to the shortened holiday week after China’s announcement of tariff cuts jolted risk appetite. China cut import tariffs on a range of goods including food and consumer items ahead of the scheduled signing of the first-phase of the U.S.-China trade deal in January. Most of the reduced levies will kick in on January 1st, while tariff cuts on tech goods will take effect on July 1st.

On the economic calendar, we received the preliminary Durable Goods Orders data for November, showing a decline of 2.00% following a downward revised 0.20% gain prior. Excluding transportation, Durables were unchanged following a revised 0.30% gain prior. Capital Goods Orders showed a 0.10% gain as expected following an unrevised 1.10% increase prior, while Capital Goods Ship fell 0.30% following a revised 0.70% increase prior. Lastly, we received the November New Home Sales which rose to 719k from a downwardly revised 710k prior. New Home Sales gained 1.30% MoM after slipping a downwardly revised 2.70% prior. Later today at 10:00 AM (PT), U.S. will auction $40 billion 2-Year Notes.

The curve has flattened with the UST 10-Year yield down 0.5 bp from prior closing.
This Week's Events
  12/23 Chicago Fed Nat Activity Index 05:30 Nov -0.33 0.56 -0.71 -0.76  
  12/23 Durable Goods Orders 05:30 Nov P 1.50% -2.00% 0.50% 0.20%  
  12/23 Durables Ex Transportation 05:30 Nov P 0.20% 0.00% 0.50% 0.30%  
  12/24 Richmond Fed Manufact. Index 07:00 Dec 1.00 - -1.00 -  
  12/25 No Data - - - - - -  
  12/26 MBA Mortgage Applications 04:00 20 Dec - - -5.00% -  
  12/26 Initial Jobless Claims 05:30 21 Dec 220k - 234k -  
  12/26 Continuing Claims 05:30 14 Dec 1699k - 1722k -  
  12/26 Bloomberg Consumer Comfort 06:45 22 Dec - - 61.10 -  
  12/27 No Data - - - - - -
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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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