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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   99-29 (+02.5)  
 
  FN 3.5% Coupon   102-31.5 (-01)  
 
  Support   2.759%  
 
  Resistance   1.721%  
 
 
 
 
  Wednesday, January 22, 2020
 
 

Treasury Yields Slightly Lower as Stocks Rebound

 
 
Market opened today’s session with treasuries slightly edging higher across all maturities. 10-Year Treasury yield is at 1.7603, 1.40 bps decreased from prior closing of 1.7743.

Stocks rebounded from yesterday’s loss after China took steps to contain the spread of a deadly respiratory virus. China said it will start a nationwide screening effort but their government is still carefully regulating information. Hong Kong reported its first case of the same virus which has killed 9 people in China so far. Airline stocks also rebounded this morning after falling sharply on the outbreak of the virus yesterday. However, investors are still taking a very careful stance and on the lookout for any developments that could dent the recent momentum that pushed stocks to record highs. As the corporate earnings season continues, IBM posted better-than-expected quarterly results, pushing its shares north more than 2% in the premarket. Thus far, more than 10% of the S&P 500 has reported their results and 75% of those companies have beaten analysts’ estimates. Elsewhere, WTI crude slid this morning after it was reported that global supplies had not been disrupted by the Libyan port crisis, trading slightly above $57 a barrel.

MBA mortgage applications index fell 1.20% after rising 30.20% in prior week. Both purchases and refinances fell 2.00% and 1.80% after rising 15.50% and 42.70% in prior week, respectively. Chicago Fed National Activity index in December also fell to -0.35 from a downwardly revised prior of 0.41 vs. 0.13 consensus. FHFA House Price index in November slightly edged lower to 0.20% from an upwardly revised prior of 0.40% vs. 0.30% consensus. Lastly, Existing Home Sales in December displayed robust sales of previously owned US homes. It rose 3.60%, the best pace in almost two years, to 5.54 million from 5.35 million prior as low interest rates continued to encourage the buyers despite record low inventory.

The curve has bull-flattened with UST 10-Year yield down 1.40 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  01/20 No Data - - - - - -  
                   
  01/21 No Data - - - - - -  
                   
  01/22 MBA Mortgage Applications 04:00 17 Jan - -1.20% 30.20% -  
                   
  01/22 Chicago Fed Nat Activity Index 05:30 Dec 0.13 -0.35 0.56 0.41  
                   
  01/22 FHFA House Price Index MoM 06:00 Nov 0.30% 0.20% 0.20% 0.40%  
                   
  01/22 Existing Home Sales 07:00 Dec 5.43m 5.54m 5.35m -  
                   
  01/22 Existing Home Sales MoM 07:00 Dec 1.50% 3.60% -1.70% -  
                   
  01/23 Initial Jobless Claims 05:30 18 Jan 214k - 204k -  
                   
  01/23 Continuing Claims 05:30 11 Jan 1750k - 1767k -  
                   
  01/23 Bloomberg Consumer Comfort 06:45 19 Jan - - 66.00 -  
                   
  01/23 Leading Index 07:00 Dec -0.20% - 0.00% -  
                   
  01/23 Kansas City Fed Manf. Activity 08:00 Jan -6.00 - -8.00 -  
                   
  01/24 Markit US Manufacturing PMI 06:45 Jan P 52.50 - 52.40 -  
                   
  01/24 Markit US Services PMI 06:45 Jan P 53.00 - 52.80 -  
                   
  01/24 Markit US Composite PMI 06:45 Jan P - - 52.70 -
                   
 
 
 
 
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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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