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Market Commentary



 
Today's Coupons
 
  10-Year Notes   104-08.5 (+12.5)  
 
  FN 3.5% Coupon   104-01 (+01.5)  
 
  Support   2.722%  
 
  Resistance   1.041%  
 
 
 
 
  Tuesday, March 3, 2020
 
 

Treasury Yields Continue to Lower as Fed Announces Emergency Rate Cut

 
 
Market opened today’s session with treasuries advancing across all maturities. 10-Year Treasury yield is at 1.0848, 7.84 bps decreased from prior closing of 1.1632.

Stocks fell and Treasuries rallied earlier this morning after the G-7 pledged to battle the economic fallout from the coronavirus with policy tools but failed to offer immediate action. An announcement from yesterday that a teleconference with the G-7 finance ministers was scheduled lifted investor sentiment, pushing the S&P 500 north to post its biggest surge in 14 months. However, the call offering no specific action dented the uplifted mood and an attempt for a second day of gains. Later this morning, the Fed delivered an emergency half percentage point rate cut to protect the existing economic expansion from the coronavirus as they commented that the virus poses evolving risks to economic activity. The total confirmed cases of the corona virus now exceeded 92,000 with the death toll at 3,129. Also, the second case was confirmed in New York and the death toll from the outbreak in the US rose to 6, all in Seattle. Elsewhere, WTI crude continues to extend their recent gains, trading above $48 a barrel this morning. Wards Total Vehicle Sales from February will be released later today.

The curve has bull-steepened with UST 10-Year yield down 7.84 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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