Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   103-14 (-03.5)  
 
  FN 3.5% Coupon   99-28.5 (-01.5)  
 
  Support   3.237%  
 
  Resistance   2.543%  
 
 
 
 
Wednesday, January 30, 2019
 
 
Market opened today’s session with treasuries inching lower across all maturities. 10-Year treasury yield is at 2.7240, 1.42 bps increased from prior closing of 2.7098.

US stock index futures sharply advanced this morning as investors were reassured by the latest batch of corporate earnings. Boeing comfortably beat their quarterly expectations and also posted annual revenue of more than $100 billion for the first time. Apple also extended gain after reporting a quarterly profit above expectations. Facebook and Microsoft are scheduled to post their results after the close today. Apart from the corporate earnings, the FOMC will announce their rate decision today at 11:00 AM (PT) which will be followed by a press conference with Fed Chair Powell. While the market is already expecting no change to the rate, tone of the statement and the conference will be closely parsed for timing of the next rate hike and the year’s outlook. In Washington, representatives from the US and China will meet today to resolve the ongoing trade dispute. Treasuries edged lower and WTI crude gained.

MBA Mortgage Applications fell 3.00% last week from 2.70% decline in prior. Purchases and refinances were down 2.30% and 5.50% after falling 2.20% and 5.30% in prior, respectively. ADP employment in January rose 213K vs. 181k consensus and a downwardly revised prior of 263k, signaling that the labor market still remains robust despite headwinds from the government shutdown. Pending Home Sales in December declined 2.20% vs. a 0.50% increase consensus and -0.90% revised prior. We will have Nonfarm Payrolls and Unemployment Rate on Friday.

The curve has bear-steepened with UST 10-Year yield up 1.42 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  01/28 Chicago Fed Nat Activity Index 05:30 Dec - 0.27 0.22 0.21  
                   
  01/28 Dallas Fed Manf. Activity 07:30 Jan -2.70 1.00 -5.10 -  
                   
  01/29 S&P CoreLogic CS 20-City YoY NSA 06:00 Nov 4.89% 4.68% 5.03% 5.02%  
                   
  01/29 S&P CoreLogic CS 20-City MoM SA 06:00 Nov 0.40% 0.30% 0.41% 0.42%  
                   
  01/30 MBA Mortgage Applications 04:00 25 Jan - -3.00% -2.70% -
                 
  01/30 ADP Employment Change 05:15 Jan 181k 213k 271k 263k  
                   
  01/30 Pending Home Sales MoM 07:00 Dec 0.50% -2.20% -0.70% -0.90%  
                   
  01/30 Pending Home Sales NSA YoY 07:00 Dec -7.00% -9.50% -7.70% -7.80%  
                   
  01/30 FOMC Rate Decision (Upper Bound) 11:00 30 Jan 2.50% - 2.50% -  
                   
  01/30 FOMC Rate Decision (Lower Bound) 11:00 30 Jan 2.25% - 2.25% -  
                   
  01/31 Challenger Job Cuts YoY 04:30 Jan - - 35.30% -  
                   
  01/31 Initial Jobless Claims 05:30 26 Jan 215k - 199k -  
                   
  01/31 Continuing Claims 05:30 19 Jan 1721k - 1713k -  
                   
  01/31 Bloomberg Consumer Comfort 06:45 27 Jan - - 57.40 -  
                   
  02/01 Change in Nonfarm Payrolls 05:30 Jan 165k - 312k -  
                   
  02/01 Unemployment Rate 05:30 Jan 3.90% - 3.90% -  
                   
  02/01 Average Hourly Earnings MoM 05:30 Jan 0.30% - 0.40% -  
                   
  02/01 Average Hourly Earnings YoY 05:30 Jan 3.20% - 3.20% -  
                   
  02/01 Labor Force Participation Rate 05:30 Jan - - 63.10% -  
                   
  02/01 Markit US Manufacturing PMI 06:45 Jan P 54.80 - 54.90 -  
                   
  02/01 Construction Spending MoM 07:00 Dec 0.20% - - -  
                   
  02/01 U. of Mich. Sentiment 07:00 Jan F 90.70 - 90.70 -  
                   
 
 
 
 
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
 
 
   
 
  This information is provided solely for informational use and is not intended as trading or investment advice 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  
 
©2019 Sun West Mortgage Company, Inc. All Rights Reserved