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Market Commentary



 
Today's Coupons
 
  10-Year Notes   105-08.5 (+15)  
 
  FN 3.5% Coupon   103-31.5 (+00.5)  
 
  Support   2.717%  
 
  Resistance   0.925%  
 
 
 
 
  Thursday, March 5, 2020
 
 

Treasury Yields Lower Again on Coronavirus Fears

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 0.9392, 11.3 bps decreased from prior closing of 1.0522.

The coronavirus once again took over the market sentiment, erasing more than half of yesterday’s gains in stocks. Demand in haven assets surged, refreshing record lows of Treasury yields. California declared a state of emergency after a California man died due to the virus while on a cruise ship. The ship was scheduled to return early after the death but it was held off so everyone onboard could be screened. The total confirmed cases surged over 96,000 with the death toll at 3,303. Gold also advanced but oil ended its recent rally as OPEC debated production output cuts to battle the impact of the virus outbreak. In the economic calendar, Initial Jobless Claims came in slightly above consensus of 215k at 216k but Continuing Claims printed below consensus of 1738k at 1729k. Bloomberg Consumer Comfort also edged down to 63.00 from 63.50 prior. Factory Orders in January dropped more than expected to -0.50% from an upwardly revised prior of 1.90%. Lastly, both the headline and core Durable Goods Orders came in line with consensuses of -0.20% and 0.80%, respectively.

The curve has bull-steepened with UST 10-Year yield down 11.3 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 - 15.10% 1.50% -  
                   
  03/04 ADP Employment Change 05:15 Feb 170K 183K 291K 209K  
                   
  03/04 Markit US Services PMI 06:45 Feb F 49.40 49.40 49.40 -  
                   
  03/04 Markit US Composite PMI 06:45 Feb F - 49.60 49.60 -  
                   
  03/05 Initial Jobless Claims 05:30 29 Feb 215K 216K 219K -  
                   
  03/05 Continuing Claims 05:30 22 Feb 1738K 1729K 1724K 1722K  
                   
  03/05 Bloomberg Consumer Comfort 06:45 1 Mar - 63.00 63.50 -  
                   
  03/05 Factory Orders 07:00 Jan -0.10% -0.50% 1.80% 1.90%  
                   
  03/05 Durable Goods Orders 07:00 Jan F -0.20% -0.20% -0.20% -  
                   
  03/05 Durables Ex Transportation 07:00 Jan F 0.80% 0.80% 0.90% -  
                   
  03/06 Trade Balance 05:30 Jan -$46.20B - -$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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