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Market Commentary



 
Today's Coupons
 
  10-Year Notes   97-26 (+02.5)  
 
  FN 2.5% Coupon   103-26 (-03.5)  
 
  Support   1.086%  
 
  Resistance   0.807%  
 
 
 
 
  Tuesday, February 23, 2021
 
 

Treasury Yields Lower Ahead of Powell Testimony

 
 
Market opened today's session with treasuries higher across all maturities. 10-Year Treasury yield is at 1.3585, 0.68 bp decreased from prior closing of 1.3653.
US equities continued moving lower this morning, with tech-heavy Nasdaq declining by 2%. Federal Reserve Chair Jerome Powell will testify before the Senate Banking Committee, and before the House Financial Services panel on Wednesday. Expectations are set for Powell to lessen inflation fears in the face of President Joe Biden's $1.9 trillion coronavirus relief proposal. Elsewhere, Bitcoin lowered below $50,000, meanwhile WTI crude and Gold both hovered around $61.69 a barrel and $1,809.47 an ounce, respectively. On the economic front, the Conference Board of Consumer Confidence reported at 91.30, higher than expected for the month of February. Today's reading presents a moderately bullish outlook on the economy, with present situational confidence increasing to 92.0 from a prior value of 85.5. Notably, Consumer Confidence expectations slightly fell from 91.20 a month prior, to 90.80, today. The Richmond Manufacturing Survey failed to meet expectations today, after having reported in line with a prior monthly result of 14.00. Notably, when compared to the results from a month prior, today's report showed a significant increase in backorders, from 6 to 18. Additionally, inventory levels increased from -6 to -3, all the while new order volume slightly slowed from 12 to 10. Reporting tomorrow are MBA Mortgage Applications and New Home Sales, with the latter expected at 855K, an increase over previously reported 842K.
The curve has bull-flattened with UST 10-Year yield down 0.68 bp.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  02/22 Chicago Fed Nat Activity Index 05:30 Jan 0.50 0.66 0.52 0.41  
                   
  02/22 Leading Index 07:00 Jan 0.40% 0.50% 0.30% 0.40%  
                   
  02/23 S&P CoreLogic CS 20-City YoY NSA 06:00 Dec 9.90% 10.10% 9.08% 9.20%  
                   
  02/23 S&P CoreLogic CS 20-City MoM SA 06:00 Dec 1.25% 1.25% 1.42% 1.46%  
                   
  02/23 Conf. Board Consumer Confidence 07:00 Feb 90.00 91.30 89.30 88.90  
                   
  02/23 Richmond Fed Manufact. Index 07:00 Feb 15.00 14.00 14.00 -  
                   
  02/24 MBA Mortgage Applications  04:00 19 Feb - - -5.10% -  
                   
  02/25 Durable Goods Orders 05:30 Jan P 1.00% - 0.50% -  
                   
  02/25 Initial Jobless Claims 05:30 20 Feb 830k - 861k -  
                   
  02/25 Continuing Claims 05:30 13 Feb 4420k - 4494k -  
                   
  02/25 GDP Price Index 05:30 4Q S 2.00% - 2.00% -  
                   
  02/25 Bloomberg Consumer Comfort 06:45 21 Feb - - 45.80 -  
                   
  02/26 PCE Deflator MoM 05:30 Jan 0.30% - 0.40% -  
                   
  02/26 PCE Deflator YoY 05:30 Jan 1.40% - 1.30% -  
                   
  02/26 U. of Mich. Sentiment 07:00 Feb F 76.50 - 76.20 -  
                   
 
 
 
 
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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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