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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   98-23 (+06)  
 
  FN 2.5% Coupon   105-17 (+03)  
 
  Support   0.902%  
 
  Resistance   0.658%  
 
 
 
 
  Wednesday, January 27, 2021
 
 

Treasury Yields Fall Ahead of FOMC Decision

 
 
Market opened today's session with treasuries higher across all maturities. 10-Year Treasury yield is at 1.0195, 1.52 bps decreased from prior closing of 1.0347.
US equities opened lower this morning as retail traders took bullish positions in both Gamestop and AMC Entertainment Holdings Inc. In Europe, the euro fell while the UK moved to tighten restrictions in an attempt to limit the spread of COVID, all the while Germany reduced its 2021 economic growth output. Elsewhere, Bitcoin dipped below $30,000 while WTI crude and Gold both recorded drops of 1.1% and 0.9%, respectively. On the economic front, MBA Mortgage Applications fell by 4.10% in the week ending January 22nd. Notably, both purchases and refi's fell by 4.00% and 5.00%, respectively, with refi's accounting for 70.7% of all loans. The 30 year fixed rate stood at 2.95%. Durable Goods Orders failed to meet expectations after reporting a rise of 0.20% for the month of December. Notably, capital good orders excluding aircrafts increased by 0.60% during the same time period, all the while demand continued strong for pandemic related items such as vehicles and computers. The strongest driver in continued durable growth lies with the effectiveness and efficiency of vaccine distribution within the US. Reporting later today are the FOMC upper and lower bounds, both expected at 0.25% and 0.0%, respectively. And reporting tomorrow are Initial Jobless Claims and Annualized GDP, both expected at 875K and 4.20%, respectively.
The curve has bull-flattened with UST 10-Year yield down 1.52 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  01/25 Chicago Fed Nat Activity Index 05:30 Dec 0.10 0.52 0.27 0.31  
                   
  01/26 S&P CoreLogic CS 20-City YoY NSA 06:00 Nov 8.70% 9.08% 7.95% 8.01%  
                   
  01/26 S&P CoreLogic CS 20-City MoM SA 06:00 Nov 1.00% 1.42% 1.61% 1.59%  
                   
  01/26 Conf. Board Consumer Confidence 07:00 Jan 89.00 89.30 88.60 87.10  
                   
  01/26 Richmond Fed Manufact. Index 07:00 Jan 19.00 14.00 19.00 -  
                   
  01/27 MBA Mortgage Applications  04:00 22 Jan - -4.10% -1.90% -  
                   
  01/27 Durable Goods Orders 05:30 Dec P 1.00% 0.20% 1.00% 1.20%  
                   
  01/28 Initial Jobless Claims 05:30 23 Jan 875k - 900k -  
                   
  01/28 Continuing Claims 05:30 16 Jan 5088k - 5054k -  
                   
  01/28 GDP Price Index 05:30 4Q A 2.20% - 3.50% -  
                   
  01/28 Bloomberg Consumer Comfort 06:45 24 Jan - - 43.70 -  
                   
  01/28 Leading Index 07:00 Dec 0.30% - 0.60% -  
                   
  01/29 PCE Deflator MoM 05:30 Dec 0.30% - 0.00% -  
                   
  01/29 PCE Deflator YoY 05:30 Dec 1.20% - 1.10% -  
                   
  01/29 U. of Mich. Sentiment 07:00 Jan F 79.20 - 79.20 -  
                   
 
 
 
 
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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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