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Market Commentary



 
Today's Coupons
 
  10-Year Notes   101-12 (-06.5)  
 
  FN 3.5% Coupon   103-12 (-01)  
 
  Support   2.753%  
 
  Resistance   1.311%  
 
 
 
 
  Wednesday, February 26, 2020
 
 

Treasury Yields Drift as Investors Seek Stability

 
 
Market opened today’s session with long end of the yield curve slightly inching higher. 10-Year Treasury yield is at 1.3587, 0.66 bp increased from prior closing of 1.3521.

US equities slightly rebounded for the first time in five days as the market participants sought stability as they digested more developments on the coronavirus front. The deadly virus continued to spread across the globe notably with South Korea reaching 1,261 confirmed cases and Italy reaching 322. The first cases in Greece and in South America emerged as well. The total confirmed cases now exceeded 81,000 with the death toll at 2,768. In the US, health officials warned of widespread disruption if the virus spreads in the country yesterday. President Trump will also hold a conference today to address the coronavirus. In corporate news, earnings result will keep rolling in this week from companies including Baidu, Best Buy and Dell. Elsewhere, WTI crude drifted after sharp losses in recent sessions, trading below $50 a barrel this morning.

MBA Mortgage Applications index rose 1.50% after falling 6.40% in prior week. Purchases increased 5.70% while refinances fell 0.80% after falling 3.40% and 8.00% in prior week, respectively. Also, New Home Sales data from January once again showed robust demand in housing market as it climbed to 764k vs. 718k consensus. Its prior reading of 694k was upwardly revised to 708k. Later today, the US Treasury is scheduled to auction off $18 billion of 2-year FRNs reopening at 8:30 AM (PT), and $41 billion of 5 year notes at 10:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 0.66 bp.
 
 
   
 
   
 
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 - 1.50% -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 1722k - 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 2.30% - 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 -
                   
 
 
 
 
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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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