Back to top

Market Commentary

Home
Market Commentary



 
Today's Coupons
 
  10-Year Notes   101-12.5 (-22)  
 
  FN 3.5% Coupon   103-04.5 (-02.5)  
 
  Support   2.753%  
 
  Resistance   1.503%  
 
 
 
 
  Tuesday, February 4, 2020
 
 

Treasury Yields Climb Further as Stocks Rally Globally

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 1.5922, 6.50 bps increased from prior closing of 1.5272.

US stocks rose this morning along with European stocks as investors weighed the continued efforts to contain the virus itself as well as the economic fallout. Tesla and Apple jumped this morning, and airlines and other companies directly impacted by the coronavirus, including Carnival, rose in the premarket as well. In an effort to minimize the damage to its economic growth, China’s central bank will reportedly lower its key lending rate as well as its reserve requirement ratios in the near future which also boosted investor sentiment. Meanwhile, Chinese stocks rebounded overnight along with other global equities after a massive sell-off on Monday. Although investors appear to feel more at ease from the measures that China is introducing to contain the virus and support its economic growth, the total confirmed cases of the coronavirus now exceeded 20,500 with the death toll of 427 while Hong Kong reported the second fatality outside mainland China. Elsewhere, WTI crude slightly rebounded as well, trading above $50 a barrel this morning.

We have a fairly light economic calendar today. Factory Orders in December jumped to 1.80% from a downwardly revised prior of -1.20% vs. 1.20% consensus, and both the headline and the core Durable Goods Orders came in line with its consensuses and prior readings at 2.40% and -0.10%, respectively.

The curve has bear-steepened with UST 10-Year yield up 6.50 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% 1.80% -0.70% -1.20%  
                   
  02/04 Durable Goods Orders 07:00 Dec F 2.40% 2.40% 2.40% -  
                   
  02/04 Durables Ex Transportation 07:00 Dec F -0.10% -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% -
                   
 
 
 
 
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 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.  
 
 
© Sun West Mortgage Company, Inc. All Rights Reserved