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Market Commentary



 
Today's Coupons
 
  10-Year Notes   101-27.5 (-07.5)  
 
  FN 3.5% Coupon   103-06 (-01)  
 
  Support   2.753%  
 
  Resistance   1.503%  
 
 
 
 
  Monday, February 3, 2020
 
 

Treasury Yields Climb as Stocks Rebound

 
 
Market opened today’s session with treasuries edging lower across all maturities. 10-Year Treasury yield is at 1.5614, 5.46 bps increased from prior closing of 1.5068.

Despite continued efforts to contain the deadly coronavirus, the death poll has exceeded 360 with confirmed cases now well above 17,000. The confirmed cases in the US also increased to 11, and the Philippines reported the first fatality outside of China. US stocks rose this morning as investors tried to recoup the losses from last week, and Treasuries slipped. Meanwhile, markets in China reopened and experienced steep losses as expected, and its central bank cut rates as it injected cash into their financial system to cushion the blow. In corporate news, Nike led the gains in stock market after analysts at UBS and JPMorgan recommended buying its stocks. Elsewhere, WTI crude edged lower this morning, trading below $51 a barrel. In the economic calendar, Markit US Manufacturing PMI slightly inched higher to 51.90 from 51.70 prior but Construction Spending in December declined to -0.20% from an upwardly revised prior of 0.70% vs. 0.50% consensus. Lastly, both ISM Manufacturing and ISM Prices Paid in January increased to 50.90 and 53.30 vs. 48.50 and 51.00 consensuses, respectively.

The curve has bear-steepened with UST 10-Year yield up 5.46 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  02/03 Construction Spending MoM 07:00 Dec 0.50% -0.20% 0.60% 0.70%  
                   
  02/03 ISM Manufacturing 07:00 Jan 48.50 50.90 47.20 47.80  
                   
  02/03 ISM Prices Paid 07:00 Jan 51.00 53.30 51.70 -  
                   
  02/04 Factory Orders 07:00 Dec 1.20% - -0.70% -  
                   
  02/04 Durable Goods Orders 07:00 Dec F 2.40% - 2.40% -  
                   
  02/04 Durables Ex Transportation 07:00 Dec F -0.10% - -0.10% -  
                   
  02/05 MBA Mortgage Applications 04:00 31 Jan - - 7.20% -  
                   
  02/05 ADP Employment Change 05:15 Jan 158K - 202K -  
                   
  02/05 Trade Balance 05:30 Dec -$48.20b - -$43.10b -  
                   
  02/05 Markit US Services PMI 06:45 Jan F 53.20 - 53.20 -  
                   
  02/05 Markit US Composite PMI 06:45 Jan F - - 53.10 -  
                   
  02/06 Initial Jobless Claims 05:30 1 Feb 215K - 216K -  
                   
  02/06 Continuing Claims 05:30 25 Jan 1720K - 1703K -  
                   
  02/06 Bloomberg Consumer Comfort 06:45 2 Feb - - 67.30 -  
                   
  02/07 Change in Nonfarm Payrolls 05:30 Jan 160K - 145K -  
                   
  02/07 Average Hourly Earnings MoM 05:30 Jan 0.30% - 0.10% -  
                   
  02/07 Average Hourly Earnings YoY 05:30 Jan 3.00% - 2.90% -  
                   
  02/07 Wholesale Inventories MoM 07:00 Dec F -0.10% - -0.10% -  
                   
  02/07 Wholesale Trade Sales MoM 07:00 Dec 0.10% - 1.50% -
                   
 
 
 
 
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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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