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Market Commentary



 
Today's Coupons
 
  10-Year Notes   103-30 (+13.5)  
 
  FN 3.5% Coupon   104-01.5 (+06.5)  
 
  Support   2.722%  
 
  Resistance   1.041%  
 
 
 
 
  Monday, March 2, 2020
 
 

Treasury Yields Refresh New Lows as Equities Rebound

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 1.0654, 8.32 bps decreased from prior closing of 1.1486.

US stocks headed for their first gain this morning as investors assessed possible interventions from central banks and tried to rebound from the worst week since the 2008 financial crisis. Treasuries also advanced, refreshing new lows including 10-Year yield falling below 1.10%. On Friday, a rare statement from Fed Chair Powell promised an action based on the evolving risks posed by the outbreak. The Bank of Japan and the Bank of England also followed up, promising to ensure stability in financial markets. Investors are still on edge of their seats as the global economic growth appears to be more pessimistic. The total confirmed cases now near 90,000 and the death toll surpassed 3,000 with the first case reported in New York City. Elsewhere, WTI crude also rebounded as OPEC and its allies are expected to agree on deeper output cuts following the coronavirus outbreak, heading toward $46 a barrel this morning.

Markit US Manufacturing PMI slightly inched lower to 50.70 vs. both consensus and prior reading of 50.80. The increase in Construction Spending from January underscored strength in housing market once again as it climbed to 1.80% from an upwardly revised prior of 0.20% vs. 0.60% consensus. ISM Manufacturing, however, fell to 50.10 from 50.90 prior and ISM Prices Paid also declined to 45.90 from 53.30 prior vs. 50.80 consensus. Later today, the US Treasury is scheduled to auction off $45 billion of 13-week bills and $29 billion of 26-week bills at 8:30 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 8.32 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/02 Markit US Manufacturing PMI 06:45 Feb F 50.80 50.70 50.80 -  
                   
  03/02 Construction Spending MoM 07:00 Jan 0.60% 1.80% -0.20% 0.20%  
                   
  03/02 ISM Manufacturing 07:00 Feb 50.50 50.10 50.90 -  
                   
  03/02 ISM Prices Paid 07:00 Feb 50.80 45.90 53.30 -  
                   
  03/04 MBA Mortgage Applications 04:00 28 Feb - - 1.50% -  
                   
  03/04 ADP Employment Change 05:15 Feb 170K - 291K -  
                   
  03/04 Markit US Services PMI 06:45 Feb F 49.40 - 49.40 -  
                   
  03/04 Markit US Composite PMI 06:45 Feb F - - 49.60 -  
                   
  03/05 Initial Jobless Claims 05:30 29 Feb 215K - 219K -  
                   
  03/05 Continuing Claims 05:30 22 Feb 1738K - 1724K -  
                   
  03/05 Bloomberg Consumer Comfort 06:45 1 Mar - - 63.50 -  
                   
  03/05 Factory Orders 07:00 Jan -0.10% - 1.80% -  
                   
  03/05 Durable Goods Orders 07:00 Jan F -0.20% - -0.20% -  
                   
  03/05 Durables Ex Transportation 07:00 Jan F - - 0.90% -  
                   
  03/06 Trade Balance 05:30 Jan -$46.40B - -$48.90B -  
                   
  03/06 Change in Nonfarm Payrolls 05:30 Feb 175K - 225K -  
                   
  03/06 Average Hourly Earnings MoM 05:30 Feb 0.30% - 0.20% -  
                   
  03/06 Average Hourly Earnings YoY 05:30 Feb 3.00% - 3.10% -  
                   
  03/06 Wholesale Inventories MoM 07:00 Jan F -0.20% - -0.20% -  
                   
  03/06 Wholesale Trade Sales MoM 07:00 Jan - - -0.70% -
                   
 
 
 
 
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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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