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Market Commentary



 
Today's Coupons
 
  10-Year Notes   107-13 (+1-30.5)  
 
  FN 3.5% Coupon   104-04 (+03)  
 
  Support   2.693%  
 
  Resistance   0.685%  
 
 
 
 
  Friday, March 6, 2020
 
 

Treasury Yields Extend Drop, Stocks Tumble Globally

 
 
Market opened today’s session with treasuries rallying across all maturities. The 10-Year Treasury yield is currently at 0.708 after closing at 0.914 prior.

Investors rushed for havens overnight amid escalating concern over the economic fallout and the expansion of health crisis led by the coronavirus outbreak. The number of confirmed cases is now over 100,000 globally, with 233 confirmed cases spread over 18 states in the United States. President Trump has reportedly signed a $7.8 billion emergency coronavirus spending bill this morning. Both the 10-year and 30-year yields plunged to record lows, while U.S. equity futures pointed to another day of losses as stocks fell worldwide. Despite a strong labor market showing in February, the virus continued its hold on market sentiment. There was nearly no reaction to data showing U.S. employment jolted in February with its biggest gain since May 2018. Nonfarm Payrolls rose nearly 100k more than the consensus expectation at 273k versus 175k in February, while January’s numbers were also revised higher from 225k to 273k. Private Payrolls rose 228k in February versus an expected 160k increase, and Manufacturing Payrolls increased 15k following a downwardly revised -20k prior. Lastly, the Unemployment Rate dropped to 3.5% from 3.6% prior.

The curve has bull-flattened with the UST 10-Year yield down 20.6 bps from prior closing.
 
 
   
 
   
 
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 -$46.10B -$45.30B -$48.90B -$48.60B  
                   
  03/06 Change in Nonfarm Payrolls 05:30 Feb 175K 273K 225K 273K  
                   
  03/06 Average Hourly Earnings MoM 05:30 Feb 0.30% 0.30% 0.20% -  
                   
  03/06 Average Hourly Earnings YoY 05:30 Feb 3.00% 3.00% 3.10% -  
                   
  03/06 Wholesale Inventories MoM 07:00 Jan F -0.20% -0.40% -0.20% -  
                   
  03/06 Wholesale Trade Sales MoM 07:00 Jan - 1.60% -0.70% -0.20%
                   
 
 
 
 
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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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