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Market Commentary



 
Today's Coupons
 
  10-Year Notes   98-08.5 (+02.5)  
 
  FN 2.5% Coupon   105-15.5 (+04)  
 
  Support   0.902%  
 
  Resistance   0.658%  
 
 
 
 
  Monday, February 1, 2021
 
 

Treasury Yields Rise as GOP Introduces Stimulus Proposal

 
 
Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.0723, 0.68 bp increased from prior closing of 1.0655.
US stocks opened higher this morning following last weeks notable sell-off. Earnings from Amazon Inc. and Alphabet Inc. are expected later this week, meanwhile Silver surpassed $30 an ounce, in part due to retail demand in the commodity. On the bureaucratic front, GOP legislators will present their version of a potential stimulus aid package, expected at $618 billion, falling significantly below the Democrats $1.9 trillion proposal. Notably, the GOP's package would exclude state and local government aid as well as a minimum wage increase of $15 an hour. Elsewhere, WTI cruise and Gold both saw increases of 1.7% and 1.0%, respectively. On the economic front, Markit US Manufacturing PMI reported slightly higher than expectations at 59.20 for the month of January. Reporting at the highest level since  May 2007, today's figure also notes an increase in output prices from 58.60 to 60.40, also reporting at the highest level since July 2008. Construction Spending MoM slightly beat expectations as well, reporting an increase of 1.00% for the month of December. Notably, private construction increased by 1.20%, with residential construction up by 3.10% and nonresidential construction down by 1.70%. Government spending accounted for 23.70% of December's total spending. Elsewhere ISM Manufacturing PMI failed to meet expectations, reporting at 58.70 for the month of January. Indicative of expansion thanks to a reading above 50.00, today's figure remains optimistic, with current lean inventories indicative of future growth.
The curve has bear-steepened with UST 10-Year yield up 0.68 bp.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  02/01 Markit US Manufacturing PMI 06:45 Jan F 59.10 59.20 59.10 -  
                   
  02/01 Construction Spending MoM 07:00 Dec 0.90% 1.00% 0.90% 1.10%  
                   
  02/01 ISM Prices Paid 07:00 Jan 76.00 82.10 77.60 -  
                   
  02/03 MBA Mortgage Applications 04:00 29 Jan - - -4.10% -  
                   
  02/03 ADP Employment Change 05:15 Jan 60k - -123k -  
                   
  02/03 Markit US Services PMI 06:45 Jan F 57.40 - 57.50 -  
                   
  02/03 Markit US Composite PMI 06:45 Jan F - - 58.00 -  
                   
  02/04 Initial Jobless Claims 05:30 30 Jan 830k - 847k -  
                   
  02/04 Continuing Claims 05:30 23 Jan 4700k - 4771k -  
                   
  02/04 Bloomberg Consumer Comfort 06:45 31 Jan - - 45.70 -  
                   
  02/04 Factory Orders 07:00 Dec 0.70% - 1.00% -  
                   
  02/04 Durable Goods Orders 07:00 Dec F 0.20% - 0.20% -  
                   
  02/04 Durables Ex Transportation 07:00 Dec F 0.70% - 0.70% -  
                   
  02/05 Average Hourly Earnings MoM 05:30 Jan 0.30% - 0.80% -  
                   
  02/05 Average Hourly Earnings YoY 05:30 Jan 5.00% - 5.10% -  
                   
  02/05 Change in Nonfarm Payrolls 05:30 Jan 60k - -140k -
                   
 
 
 
 
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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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