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Market Commentary



 
Today's Coupons
 
  10-Year Notes   101-07 (+19)  
 
  FN 3.5% Coupon   103-05 (+02)  
 
  Support   2.753%  
 
  Resistance   1.605%  
 
 
 
 
  Monday, January 27, 2020
 
 

Treasury Yields Dip Further on Heightened Concern over Coronavirus

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 1.6132, 7.07 bps decreased from prior closing of 1.6839.

US stocks, oil, and the yuan tumbled this morning as the coronavirus toll kept increasing over the weekend which heightened worries over the economic fallout as well as the human cost. There have been 2,862 confirmed cases so far in China with the death toll reaching over 80 now. In an effort to battle the spread of the virus, China announced an extension of its Lunar New Year holiday by three days until Sunday but fears that China has failed to contain the virus sent travel and airline stocks south in premarket. Treasuries and other havens got a boost from the news. As the corporate earnings season continues, tech giants Apple, SAP, Facebook, and Samsung are among those due to report this week. Elsewhere, WTI crude slid this morning, trading slightly above $53 a barrel.

In the economic calendar, New Home Sales in December declined to 694k from a downwardly revised prior of 697k vs. 730k consensus. Dallas Fed Manufacturing Activity index in January edged higher to -0.20 from -3.20 prior vs. -2.00 consensus. Later today, the US Treasury is scheduled to auction off $39 billion of 26-week bills and $40 billion of 2-year notes at 8:30 AM (PT), and $45 billion of 13-week bills and $41 billion 5-year notes at 10:00 AM (PT). On Wednesday, the Fed will announce its policy decision at 11:00 AM (PT) which is widely expected to remain unchanged, followed by a press conference with Fed Chair Powell at 11:30 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 7.07 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  01/27 Dallas Fed ManfActivity 07:30 Jan -2.00 -0.20 -3.20 -  
                   
  01/28 Durable Goods Orders 05:30 Dec P 0.40% - -2.10% -  
                   
  01/28 Durables Ex Transportation 05:30 Dec P 0.30% - -0.10% -  
                   
  01/28 S&P CoreLogic CS 20-City MoM SA 06:00 Nov 0.40% - 0.43% -  
                   
  01/28 S&P CoreLogic CS 20-City YoY NSA 06:00 Nov 2.40% - 2.23% -  
                   
  01/28 Richmond Fed Manufact. Index 07:00 Jan -3.00 - -5.00 -  
                   
  01/29 MBA Mortgage Applications 04:00 24 Jan - - -1.20% -  
                   
  01/29 Wholesale Inventories MoM 05:30 Dec P 0.10% - -0.10% -  
                   
  01/29 Pending Home Sales MoM 07:00 Dec 0.50% - 1.20% -  
                   
  01/29 Pending Home Sales NSA YoY 07:00 Dec 10.30% - 5.60% -  
                   
  01/29 FOMC Rate Decision (Upper Bound) 11:00 29 Jan 1.75% - 1.75% -  
                   
  01/29 FOMC Rate Decision (Lower Bound) 11:00 29 Jan 1.50% - 1.50% -  
                   
  01/30 Personal Consumption 05:30 4Q A 2.00% - 3.20% -  
                   
  01/30 Initial Jobless Claims 05:30 25 Jan 215k - 211k -  
                   
  01/30 Continuing Claims 05:30 18 Jan 1738k - 1731k -  
                   
  01/31 Personal Income 05:30 Dec 0.30% - 0.50% -  
                   
  01/31 Personal Spending 05:30 Dec 0.30% - 0.40% -  
                   
  01/31 PCE Deflator MoM 05:30 Dec 0.20% - 0.20% -  
                   
  01/31 PCE Deflator YoY 05:30 Dec 1.60% - 1.50% -  
                   
  01/31 U. of Mich. Sentiment 07:00 Jan F 99.10 - 99.10 -
                   
 
 
 
 
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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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