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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-12 (-05.5)  
  FN 2.5% Coupon   105-05 (+00.5)  
  Support   0.791%  
  Resistance   0.615%  
  Tuesday, December 29, 2020

Treasury Yields Rise as the House Pushes for $2K Aid Checks

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.9314, 0.83 bp increased from prior closing of 0.9231.
US stocks opened higher this morning as they continued a record streak on the back of government aid prospects. The US House of Representatives continues to push for $2,000 aid checks, a proposal supported by US President Donald Trump, however, the Republican majority in the Senate is more likely than not to fail this proposal. In regards to the coronavirus, hospitalization rates in the US reached new highs with Southern California planning on extending its stay-at home order. In South Korea, COVID fatalities hit a new record, meanwhile Thailand reported its first virus linked death since November. Elsewhere WTI Crude rose by 1.3% to $48.26 a barrel, while Gold increased by 0.3%. On the economic front, the S&P CoreLogic Case-Shiller 20-City Composite Home Price Index rose to its highest level since 2014 after reporting at 7.95% for the month of October. Fueled by record low mortgage rates and strong buyer demand, house prices have surged in a manner that has priced some buyers out of the market already, as seen by November's drop in existing home sales. Reporting tomorrow are Wholesale Inventories MoM and MNI Chicago PMI, both expected at 0.60% and 56.00, respectively.
The curve has bear-steepened with UST 10-Year yield up 0.83 bp.
This Week's Events
  12/28 Dallas Fed Manf. Activity 07:30 Dec 11.60 9.70 12.00 -  
  12/29 S&P CoreLogic CS 20-City MoM SA 06:00 Oct 1.00% 1.61% 1.27% 1.44%  
  12/29 S&P CoreLogic CS 20-City YoY NSA 06:00 Oct 6.95% 7.95% 6.57% 6.64%  
  12/30 Wholesale Inventories MoM 05:30 Nov P 0.60% - 1.10% -  
  12/31 Initial Jobless Claims 05:30 26 Dec 830k - 803k -  
  12/31 Continuing Claims 05:30 19 Dec 5390k - 5337k -  
  12/31 Bloomberg Consumer Comfort 06:45 27 Dec - - 47.00 -  
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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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