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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   99-08.5 (+07.5)  
 
  FN 3.5% Coupon   102-30.5 (+01.5)  
 
  Support   2.784%  
 
  Resistance   1.721%  
 
 
 
 
  Friday, January 10, 2020
 
 

Treasury Yields Lower on Jobs Report

 
 
Market opened today’s session with treasuries nudging higher across all maturities. 10-Year Treasury yield is at 1.8388, 1.57 bps decreased from prior closing of 1.8545.

Stocks fluctuated but remained relatively calm after hiring data confirmed that the labor market remained on solid footing in the last month of 2019 despite of its weaker-than-expected reading. Treasuries rose and the dollar was little changed against its major peers. In mid-session yesterday, it was reported that a missile shot down the Boeing 737-800 jet that crashed in Iran earlier this week which spooked the market. However, investors remained optimistic this morning with next week’s signing of the phase one deal between the US and China and the de-escalation of tension in the Middle East which have helped revitalizing risk appetite. Elsewhere, gold turned higher and WTI crude edged lower, trading slightly above $59 a barrel.

Nonfarm payrolls in December came in below consensus of 160k at 145k, a 111k decline from downwardly revised prior of 256k. Its supporting details were also soft with change in manufacturing industry payrolls printing -12k vs. upwardly revised prior of 58k, and monthly average hourly earnings increasing only 0.10% vs. 0.30% consensus. Unemployment Rate remained unchanged at 3.50%. Lastly, Wholesale Inventories slightly declined to -0.10% vs. both consensus and prior of 0.00%.

The curve has bull-flattened with UST 10-Year yield down 1.57 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 145K 266K 256K  
                   
  01/10 Average Hourly Earnings MoM 05:30 Dec 0.30% 0.10% 0.20% 0.30%  
                   
  01/10 Average Hourly Earnings YoY 05:30 Dec 3.10% 2.90% 3.10% -  
                   
  01/10 Wholesale Inventories MoM 07:00 Nov F 0.00% -0.10% 0.00% -  
                   
  01/10 Wholesale Trade Sales MoM 07:00 Nov 0.20% 1.50% -0.70% -0.90%
                   
 
 
 
 
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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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