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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   101-02 (-12)  
 
  FN 3.5% Coupon   103-07.5 (-00.5)  
 
  Support   2.753%  
 
  Resistance   1.503%  
 
 
 
 
  Wednesday, February 12, 2020
 
 

Treasury Yields Climb as Coronavirus Outbreak Eases

 
 
Market opened today’s session with treasuries inching lower across all maturities. 10-year Treasury yield is at 1.6264, 2.58 bps increased from prior closing of 1.6006.

US stocks rose on Wednesday as the latest data from China signaled that the coronavirus outbreak may be easing. The total confirmed cases exceeded 45,000 with the death toll reaching 1,117; however, the pace of newly confirmed cases has appeared to be slowing down in the past two days. Chinese President Xi also added that China has the ability to accomplish its economic growth while battling against the virus. Wynn Resorts, Las Vegas Sands, Delta, and American Airlines; stocks that have been closely affected by the virus outbreak, climbed in the premarket. WTI crude also advanced, trading above $51 a barrel this morning even after OPEC cut its forecasts for global demand. Yesterday, Fed Chair Powell confirmed that American economy is in a good standing and they are keeping a close eye on the potential economic fallout from the epidemic during his testimony in front of the House Financial Services Committee. He will testify again today in front of the Senate Banking Committee.

Mini refinance boom drove the volume last week. MBA mortgage applications index rose 1.10% after rising 5.00% in prior week. Purchases were down by 5.80% but refinances increased 5.00% after falling 9.50% and rising 15.30% in prior week, respectively. Later today, Monthly Budget Statement for January will be released at 11:00 AM (PT) and the US Treasury is scheduled to auction off $27 billion of 10-year notes at 10:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 2.58 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 - 1.10% 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 266.450 - 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 1734k - 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 -0.20% - -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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