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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   100-12 (+19.5)  
 
  FN 3.5% Coupon   103-09 (+01)  
 
  Support   2.753%  
 
  Resistance   1.458%  
 
 
 
 
  Friday, February 21, 2020
 
 

Treasury Yields Lower Further on Coronavirus Worries

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 1.4578, 5.74 bps decreased from prior  closing  of 1.5152.

US stocks slumped again this morning on growing concerns over the economic fallout of the coronavirus as it spreads outside of China. South Korea reported confirmed cases of the coronavirus over 200, reigniting the appetite for haven assets. The total confirmed cases are now nearing 77,000 with the death toll at 2,248. To make the situation even worse, the Chinese province Hubei, the center of the outbreak, revised its methodology to count confirmed cases for the third time this month, clouding the reliability of the data. Treasuries advanced, pushing the 30-year Treasury yields down to all-time low of 1.89% at one point. Slowing manufacturing data overseas in Australia and Japan also added to already-dampened sentiment. Elsewhere, WTI crude ended its rally and retreated below $53 a barrel this morning. In the economic calendar, sales of previously owned homes in the US remained robust despite the low inventory. The January data printed 5.46 million vs. 5.44 million consensus, underscoring strong labor market, rising wages, and historically low mortgage rates have been boosting housing demand. Markit US Manufacturing PMI declined to 50.80 from 51.90 prior and Services PMI also dropped to 49.40 from 53.40 prior.

The curve has bull-flattened with UST 10-Year yield down 5.74 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  02/18 Empire Manufacturing 05:30 Feb 5.00 12.90 4.80 -  
                   
  02/18 NAHB Housing Market Index 07:00 Feb 75.00 74.00 75.00 -  
                   
  02/18 Net Long-term TIC Flows 13:00 Dec - $85.60b $22.90b $27.10b  
                   
  02/18 Total Net TIC Flows 13:00 Dec - $78.20b $73.10b $77.30b  
                   
  02/19 MBA Mortgage Applications 04:00 14 Feb - -6.40% 1.10% -  
                   
  02/19 PPI Final Demand MoM 05:30 Jan 0.10% 0.50% 0.10% 0.20%  
                   
  02/19 PPI Final Demand YoY 05:30 Jan 1.60% 2.10% 1.30% -  
                   
  02/19 Housing Starts 05:30 Jan 1428k 1567k 1608k 1626k  
                   
  02/19 Housing Starts MoM 05:30 Jan -11.20% -3.60% 16.90% 17.70%  
                   
  02/19 Building Permits 05:30 Jan 1450k 1551k 1416k 1420k  
                   
  02/19 Building Permits MoM 05:30 Jan 2.10% 9.20% -3.90% -3.70%  
                   
  02/20 Philadelphia Fed Business Outlook 05:30 Feb 11.00 36.70 17.00 -  
                   
  02/20 Initial Jobless Claims 05:30 15 Feb 210k 210k 205k 206k  
                   
  02/20 Continuing Claims 05:30 8 Feb 1717k 1726k 1698k 1701k  
                   
  02/20 Leading Index 07:00 Jan 0.40% 0.80% -0.30% -  
                   
  02/21 Markit US Manufacturing PMI 06:45 Feb P 51.50 50.80 51.90 -  
                   
  02/21 Markit US Services PMI 06:45 Feb P 53.40 49.40 53.40 -  
                   
  02/21 Markit US Composite PMI 06:45 Feb P - 49.60 53.30 -  
                   
  02/21 Existing Home Sales 07:00 Jan 5.44m 5.46m 5.54m 5.53m  
                   
  02/21 Existing Home Sales MoM 07:00 Jan -1.80% -1.30% 3.60% 3.90%
                   
 
 
 
 
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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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