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Today's Coupons
 
  10-Year Notes   99-08 (-07)  
 
  FN 3.5% Coupon   102-31 (00)  
 
  Support   2.784%  
 
  Resistance   1.721%  
 
 
 
 
  Friday, January 17, 2020
 
 

Treasury Yields Climb as Stocks Rally Again to Record Highs

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-year Treasury yield is at 1.8372, 2.98 bps increased from prior closing of 1.8074.

Stocks advanced globally from a combination of a solid start to the corporate earnings season, and easing trade tensions along with strong economic data released this morning. In the first week of corporate earnings, more than 7% of the S&P 500 has reported their results so far and 74% of those companies have beaten analysts’ estimates. Schlumberger and State Street climbed in premarket after posting positive results. The earnings season continues next week with Proctor & Gamble and Intel Corp reporting. In China, its industrial data for December came in above expectation and they also posted their economic growth of 6.1% in 2019 although it marked the slowest growth rate for the country since 1990. Treasuries sold-off this morning, particularly the 30-year bonds, after the US announced plans for a new 20-year bond which was abandoned back in 1986, and the dollar increased slightly against its major peers. Elsewhere, WTI crude edged higher, trading slightly below $59 a barrel this morning.

Housing Starts from last month surprised market participants this morning by increasing 16.9% to 1608k from an upwardly revised prior of 1375k vs. 1380k consensus, giving the housing market continuing momentum with low rates, solid labor market, and optimistic buyers. This gain was the biggest in three years and marked the highest level in 13 years. However, Building Permits edged lower to 1416k from a downwardly revised prior of 1474k. Industrial Production in December also slid to -0.30% from a downwardly revised prior of 0.80% and Capacity Utilization came in line with consensus of 77.00%. Lastly, University of Michigan Sentiment slightly edged lower to 99.10 from 99.30 prior, and JOLTS Job Openings in November tumbled to 6800 from an upwardly revised prior of 7361 vs. 7250 consensus.

The curve has bear-steepened with UST 10-Year yield up 2.98 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  01/13 Monthly Budget Statement 11:00 Dec -$15.00b -13.30b -$13.50b -  
                   
  01/14 NFIB Small Business Optimism 03:00 Dec 104.60 102.70 104.70 -  
                   
  01/14 Real Avg Weekly Earnings YoY 05:30 Dec - 0.00% 1.10% 0.80%  
                   
  01/14 CPI MoM 05:30 Dec 0.30% 0.20% 0.30% -  
                   
  01/14 CPI YoY 05:30 Dec 2.40% 2.30% 2.10% -  
                   
  01/14 CPI Index NSA 05:30 Dec 257.169 256.974 257.208 -  
                   
  01/14 CPI Core Index SA 05:30 Dec 266.111 265.921 265.620 -  
                   
  01/15 MBA Mortgage Applications 04:00 10 Jan - 30.20% 13.50% -  
                   
  01/15 PPI Final Demand MoM 05:30 Dec 0.20% 0.10% 0.00% -  
                   
  01/15 PPI Final Demand YoY 05:30 Dec 1.30% 1.30% 1.10% -  
                   
  01/15 Empire Manufacturing 05:30 Jan 3.60 4.80 3.50 3.30  
                   
  01/16 Initial Jobless Claims 05:30 11 Jan 218k 204k 214k -  
                   
  01/16 Continuing Claims 05:30 4 Jan 1750k 1767k 1803k 1804k  
                   
  01/16 Retail Sales Advance MoM 05:30 Dec 0.30% 0.30% 0.20% 0.30%  
                   
  01/16 Import Price Index MoM 05:30 Dec 0.30% 0.30% 0.20% 0.10%  
                   
  01/16 Import Price Index YoY 05:30 Dec 0.50% 0.50% -1.30% -  
                   
  01/16 Export Price Index MoM 05:30 Dec 0.20% -0.20% 0.20% -  
                   
  01/16 Export Price Index YoY 05:30 Dec - -0.70% -1.30% -1.20%  
                   
  01/17 Building Permits 05:30 Dec 1460k 1416k 1482k 1474k  
                   
  01/17 Building Permits MoM 05:30 Dec -1.50% -3.90% 1.40% 0.90%  
                   
  01/17 Housing Starts 05:30 Dec 1380k 1608k 1365k 1375k  
                   
  01/17 Housing Starts MoM 05:30 Dec 1.10% 16.90% 3.20% 2.60%  
                   
  01/17 Capacity Utilization 06:15 Dec 77.00% 77.00% 77.30% 77.40%  
                   
  01/17 U. of Mich. Sentiment 07:00 Jan P 99.30 99.10 99.30 -  
                   
  01/17 JOLTS Job Openings 07:00 Nov 7250 6800 7267 7361
                   
 
 
 
 
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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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