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Today's Coupons
 
  10-Year Notes   98-31 (+04.375)  
 
  FN 3.5% Coupon   103-08 (+01)  
 
  Support   2.753%  
 
  Resistance   1.503%  
 
 
 
 
  Thursday, February 13, 2020
 
 

Treasury Yields Edge Lower after Revised Methodology for Coronavirus

 
 
Market opened today’s session with treasuries inching higher across all maturities. 10-year Treasury yield is at 1.6036, 2.97 bps decreased from prior closing of 1.6333.

US stock index futures slumped after a revised methodology of how cases of the coronavirus are counted led 14,840 additional confirmed cases in China’s Hubei province, the center of the coronavirus outbreak. The news came out just when market participants started getting somewhat comfortable with the idea that the economic fallout from the outbreak would be short-lived, and it definitely dampened recent optimism growing over the decelerated spread of the virus. The total confirmed cases now exceeded 60,000 with the death toll reaching 1,370. Treasuries rallied but trimmed the earlier gain after mixed readings of CPI data. In corporate news, Tesla’s shares fell in the premarket after they announced plans to offer $2 billion of common stock. Alibaba and Cisco also fell after warning that its revenue will be negatively impacted in the next quarter and reporting a decline in overall revenue, respectively. Elsewhere, WTI crude continued to extend its gain, trading above $51 a barrel this morning.

The January CPI headline rose to 2.50% from 2.30% prior YoY and the core rose 2.30%. The MoM change, however, declined for the headline to 0.10% from 0.20% prior but a 0.20% increase was realized for the core from 0.10% prior. Jobless Claims continued to display tight labor market with Initial Jobless Claims printing 205k vs. 203k revised prior and 210k consensus and Continuing Claims coming in at 1698k vs. 1759k revised prior and 1734k consensus. Lastly, Bloomberg Consumer Comfort slightly edged lower to 65.70 from 66.50 prior. Later today, the US Treasury is scheduled to auction off $50 billion of 4-week bills and $45 billion of 8-week bills at 8:30 AM (PT), and $19 billion of 30-year bonds at 10:00 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 2.97 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 -$32.60b $8.70b -  
                   
  02/13 CPI MoM 05:30 Jan 0.20% 0.10% 0.20% -  
                   
  02/13 CPI YoY 05:30 Jan 2.40% 2.50% 2.30% -  
                   
  02/13 CPI Index NSA 05:30 Jan 257.863 257.971 256.974 -  
                   
  02/13 CPI Core Index SA 05:30 Jan 266.450 266.476 265.921 265.832  
                   
  02/13 Real Avg Weekly Earnings YoY 05:30 Jan - 0.60% 0.60% 0.70%  
                   
  02/13 Initial Jobless Claims 05:30 8 Feb 210k 205k 202k 203k  
                   
  02/13 Continuing Claims 05:30 1 Feb 1734k 1698k 1751k 1759k  
                   
  02/13 Bloomberg Consumer Comfort 06:45 9 Feb - 65.70 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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