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Market Commentary



 
Today's Coupons
 
  10-Year Notes   98-21.5 (-07)  
 
  FN 3.5% Coupon   102-26.5 (-02)  
 
  Support   2.784%  
 
  Resistance   1.721%  
 
 
 
 
  Thursday, January 9, 2020
 
 

Treasury Yields Climb as Mideast Tension Eases

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 1.8861, 1.23 bps increased from prior closing of 1.8738.

US stock futures advanced this morning as both the US and Iran have backed away from further escalation of a deeper military conflict. President Trump said that his administration would impose new sanctions on the Islamic Republic to start off a negotiation process and a deal with them would make “the world a safer and more peaceful place”. Havens and oils declined on the news with WTI crude trading below $60 a barrel this morning, well below recent highs of more than $65 a barrel. Another news boosting investor sentiment this morning is that China has confirmed that Vice Premier Liu He will travel to Washington next week to sign the phase one deal with the US. Provided this relative easing of geopolitical concerns continues for the rest of the week, the market participants would shift their focus to the first nonfarm jobs report of the year which will be released tomorrow.

As fears of the trade tensions fade away, Initial Jobless Claims continued to display strong labor market as it declined more than expected. Initial Jobless Claims printed 214k vs. revised prior of 223k and consensus of 220k. However, Continuing Claims edged higher to 1803k from prior reading of 1728k vs. 1720k consensus. Lastly, Bloomberg Consumer Comfort index came in at 65.10 vs. 63.90 prior. Later today, the US Treasury is scheduled to auction off $35 billion of 4-week bills and $35 billion of 8-week bills at 8:30 AM (PT), and $16 billion of 30-year bonds at 10:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 1.23 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  01/06 Markit US Services PMI 06:45 Dec F 52.20 52.80 52.20 -  
                   
  01/06 Markit US Composite PMI 06:45 Dec F - 52.70 52.20 -  
                   
  01/07 Trade Balance 05:30 Nov -$43.60B -$43.10B -$47.20B -$46.90B  
                   
  01/07 Factory Orders 07:00 Nov -0.80% -0.70% 0.30% 0.20%  
                   
  01/07 Durable Goods Orders 07:00 Nov F -2.00% -2.10% -2.00% -  
                   
  01/07 Durables Ex Transportation 07:00 Nov F - -0.10% 0.00% -  
                   
  01/08 MBA Mortgage Applications 04:00 3 Jan - 13.50% -13.20% -  
                   
  01/08 ADP Employment Change 05:15 Dec 160K 202k 67K 124k  
                   
  01/09 Initial Jobless Claims 05:30 4 Jan 220K 214K 222K 223K  
                   
  01/09 Continuing Claims 05:30 28 Dec 1720K 1803K 1728K -  
                   
  01/09 Bloomberg Consumer Comfort 06:45 5 Jan - 65.10 63.90 -  
                   
  01/10 Change in Nonfarm Payrolls 05:30 Dec 160K - 266K -  
                   
  01/10 Average Hourly Earnings MoM 05:30 Dec 0.30% - 0.20% -  
                   
  01/10 Average Hourly Earnings YoY 05:30 Dec 3.10% - 3.10% -  
                   
  01/10 Wholesale Inventories MoM 07:00 Nov F 0.00% - 0.00% -  
                   
  01/10 Wholesale Trade Sales MoM 07:00 Nov 0.20% - -0.70% -
                   
 
 
 
 
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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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