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Today's Coupons
 
  10-Year Notes   101-13.5 (-13)  
 
  FN 3.5% Coupon   103-08 (00)  
 
  Support   2.753%  
 
  Resistance   1.503%  
 
 
 
 
  Tuesday, February 11, 2020
 
 

Treasury Yields Climb as Equities Advance

 
 
Market opened today’s session with treasuries inching lower across all maturities. 10-year Treasury yield is at 1.5851, 1.55 bps increased from prior closing of 1.5696.

Despite the confirmed cases of the deadly coronavirus exceeding 43,000 with the death toll reaching 1,018, investors shifted their focus to the latest views of Federal Reserve this morning as Fed Chair Powell delivers his semiannual testimony on monetary policy in Congress today and tomorrow. US equity index climbed and the dollar nudged lower against its major peers. In China, authorities are pushing its biggest companies to meet their production targets after leaving their factories idle for weeks and President Xi reportedly warned officials that measures they took to contain the virus were overdone and are now threatening their economic growth, lifting investor sentiment. Another positive news on the virus was reported that the number of newly confirmed cases last night was at its lowest since late January which helped boost investor optimism as well. In corporate news, Sprint Corp jumped more than 60% in premarket as T-Mobile’s takeover was approved in court. Corporate earnings season will continue with Softbank on Wednesday, and Alibaba, Nissan, Credit Suisse, Airbus, Nestle, and AIG due Thursday. Elsewhere, WTI crude bounced back this morning, trading above $50 a barrel.

NFIB Small Business Optimism in January climbed to 104.30 from 102.70 prior vs. 103.50 consensus. This was the third increase in the last four months, indicating the economy may still be expanding. Also, 26% of the respondents said finding qualified workers was their top issue, underscoring the tight labor market as we know. However, US jobs openings unexpectedly slumped, printing 6423 in December vs. 6925 consensus. This two-year low reading could trace back to increasing share of the population joining the workforce. Later today, the US Treasury is scheduled to auction off $38 billion of 3-year notes at 10:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 1.55 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  02/10 No Data - - - - - -  
                   
  02/11 JOLTS Job Openings 07:00 Dec 6925 6423 6800 6787  
                   
  02/12 MBA Mortgage Applications 04:00 7 Feb - - 5.00% -  
                   
  02/12 Monthly Budget Statement 11:00 Jan -10.00b - 8.70b -  
                   
  02/13 CPI MoM 05:30 Jan 0.20% - 0.20% -  
                   
  02/13 CPI YoY 05:30 Jan 2.40% - 2.30% -  
                   
  02/13 CPI Index NSA 05:30 Jan 257.863 - 256.974 -  
                   
  02/13 CPI Core Index SA 05:30 Jan 266.448 - 265.921 265.832  
                   
  02/13 Real Avg Weekly Earnings YoY 05:30 Jan - - 0.60% -  
                   
  02/13 Initial Jobless Claims 05:30 8 Feb 210k - 202k -  
                   
  02/13 Continuing Claims 05:30 1 Feb 1738k - 1751k -  
                   
  02/13 Bloomberg Consumer Comfort 06:45 9 Feb - - 66.50 -  
                   
  02/14 Import Price Index MoM 05:30 Jan -0.20% - 0.30% -  
                   
  02/14 Import Price Index YoY 05:30 Jan 0.20% - 0.50% -  
                   
  02/14 Export Price Index MoM 05:30 Jan -0.10% - -0.20% -  
                   
  02/14 Export Price Index YoY 05:30 Jan - - -0.70% -  
                   
  02/14 Retail Sales Advance MoM 05:30 Jan 0.30% - 0.30% -  
                   
  02/14 Capacity Utilization 06:15 Jan 76.80% - 77.00% -  
                   
  02/14 U. of Mich. Sentiment 07:00 Feb P 99.30 - 99.80 -
                   
 
 
 
 
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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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