Back to top

Market Commentary

Home
Market Commentary



 
Today's Coupons
 
  10-Year Notes   101-17 (+12.5)  
 
  FN 3.5% Coupon   103-13 (-00.5)  
 
  Support   2.753%  
 
  Resistance   1.337%  
 
 
 
 
  Tuesday, February 25, 2020
 
 

Treasury Yields Decline Further as Coronavirus Dominates Sentiment

 
 
Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 1.3371, 3.34 bps decreased from prior closing of 1.3705.

Treasuries continued to gain this morning while US equities fluctuated as rapid spread of the coronavirus outside China intensified fears of the global economic fallout. Investors fled equities yesterday wiping out most global equity gains for this year. Yesterday, the Dow sank more than 1,000 points and the S&P 500 dropped 3.3%, both marking the worst decline in two years. The total confirmed cases of the coronavirus now exceeded 80,000 with the death toll reaching 2,705. Meanwhile, the confirmed cases in South Korea is nearing 1,000, making them the country with the most cases outside China. The Trump administration has asked Congress for $2.5 billion to help battle the spread of the coronavirus. There is reportedly a potential vaccine with the results of trials in Wuhan expected to be released in April. Elsewhere, WTI extended its loss, trading below $51 a barrel this morning. In the economic calendar, FHFA House Price Index in December edged higher to 0.60% from an upwardly revised prior of 0.30% vs. 0.40% consensus, displaying robust demand in housing market. Conference Board Consumer Confidence, however, declined to 130.70 in February vs. 132.20 consensus. Its prior reading of 131.60 was downwardly revised to 130.40. Lastly, Richmond Fed Manufacturing index plunged to -2.00 from 20.00 prior vs. 10.00 consensus. Later today, the US Treasury is scheduled to auction off $26 billion of 52-week bills at 8:30 AM (PT), and $40 billion of 2 year notes at 10:00 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 3.34 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  02/24 Chicago Fed Nat Activity Index 05:30 Jan -0.18 -0.25 -0.35 -0.51  
                   
  02/24 Dallas Fed ManfActivity 07:30 Feb 0.00 1.20 -0.20 -  
                   
  02/25 FHFA House Price Index MoM 06:00 Dec 0.40% 0.60% 0.20% 0.30%  
                   
  02/25 S&P CoreLogic CS 20-City MoM SA 06:00 Dec 0.40% 0.43% 0.48% 0.47%  
                   
  02/25 S&P CoreLogic CS 20-City YoY NSA 06:00 Dec 2.85% 2.85% 2.55% 2.54%  
                   
  02/25 Richmond Fed Manufact. Index 07:00 Feb 10.00 -2.00 20.00 -  
                   
  02/26 MBA Mortgage Applications 04:00 21 Feb - - -6.40% -  
                   
  02/27 GDP Annualized QoQ 05:30 4Q S 2.10% - 2.10% -  
                   
  02/27 Personal Consumption 05:30 4Q S 1.70% - 1.80% -  
                   
  02/27 GDP Price Index 05:30 4Q S 1.40% - 1.40% -  
                   
  02/27 Core PCE QoQ 05:30 4Q S 1.30% - 1.30% -  
                   
  02/27 Durable Goods Orders 05:30 Jan P -1.50% - 2.40% -  
                   
  02/27 Durables Ex Transportation 05:30 Jan P 0.20% - -0.10% -  
                   
  02/27 Initial Jobless Claims 05:30 22 Feb 212k - 210k -  
                   
  02/27 Continuing Claims 05:30 15 Feb 1719k - 1726k -  
                   
  02/27 Bloomberg Consumer Comfort 06:45 23 Feb - - 65.60 -  
                   
  02/27 Pending Home Sales MoM 07:00 Jan 3.00% - -4.90% -  
                   
  02/27 Pending Home Sales NSA YoY 07:00 Jan - - 6.80% -  
                   
  02/27 Kansas City Fed Manf. Activity 08:00 Feb -1.00 - -1.00 -  
                   
  02/28 PCE Core Deflator MoM 05:30 Jan 0.20% - 0.20% -  
                   
  02/28 Wholesale Inventories MoM 05:30 Jan P 0.10% - -0.20% -  
                   
  02/28 Personal Income 05:30 Jan 0.40% - 0.20% -  
                   
  02/28 Personal Spending 05:30 Jan 0.30% - 0.30% -  
                   
  02/28 PCE Deflator MoM 05:30 Jan 0.20% - 0.30% -  
                   
  02/28 PCE Deflator YoY 05:30 Jan 1.80% - 1.60% -  
                   
  02/28 U. of Mich. Sentiment 07:00 Feb F 100.70 - 100.90 -
                   
 
 
 
 
Helpful Links
 
  Visit Us Online   Submit Loan  
 
  Get Approved   SeeMyLoanStatusTM   
 
  Download Rate Sheet   Conventional Program Guidelines  
 
  Price & Lock   Government Program Guidelines  
 
 
 
   
 
  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.  
 
 
© Sun West Mortgage Company, Inc. All Rights Reserved