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Today's Coupons
 
  10-Year Notes   109-11 (+1-24)  
 
  FN 3.5% Coupon   104-10 (+03)  
 
  Support   2.639%  
 
  Resistance   0.336%  
 
 
 
 
  Monday, March 9, 2020
 
 

Treasury Yields Plummet on Crude Price War

 
 
Market opened today’s session with treasuries sharply rallying across all maturities. 10-year Treasury yield is at 0.5161, 24.62 bps decreased from prior closing of 0.7623.

US stocks plunged and Treasury yields plummeted as a full-blown crude war between Saudi Arabia and Russia rattled already-fragile financial markets. The S&P 500 is down 18% from its Feb 19 all-time high, triggering a limit trading which halted trading for 15 minutes at 6:34 AM (PT). The breaker last tripped in December 2008 at the depths of the financial crisis. The next circuit breaker will trip if losses reach 13%, and markets will close for the day if the decline hits 20%. Causing drastic moves in markets, crude tumbled the most since 1991 after Saudi Arabia cut its official prices by the most in at least 20 years over the weekend while Russia’s largest producer said it would ramp up output next month. Credit markets also buckled as the perceived risk of corporate credit surged by the most since Lehman Brothers collapsed. The 10-year and 30-year Treasury yields fell below 0.5% and 0.9%, respectively, taking the entire US yield curve below 1% for the first time in history. There’s no scheduled event in economic calendar but later today, the US Treasury is scheduled to auction off $42 billion of 13-week bills and $36 billion of 26-week bills at 8:30 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 24.62 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/09 No Data - - - - - -  
                   
  03/10 No Data - - - - - -  
                   
  03/11 MBA Mortgage Applications 07:00 6 Mar - - 15.10% -  
                   
  03/11 CPI MoM 08:30 Feb 0.00% - 0.10% -  
                   
  03/11 CPI YoY 08:30 Feb 2.20% - 2.50% -  
                   
  03/11 CPI Index NSA 08:30 Feb 258.493 - 257.971 -  
                   
  03/11 CPI Core Index SA 08:30 Feb 266.913 - 266.476 -  
                   
  03/11 Real Avg Weekly Earnings YoY 08:30 Feb - - 0.00% -  
                   
  03/11 Monthly Budget Statement 14:00 Feb -234.50B - -234.00B -  
                   
  03/12 PPI Final Demand MoM 08:30 Feb -0.10% - 0.50% -  
                   
  03/12 PPI Final Demand YoY 08:30 Feb 1.80% - 2.10% -  
                   
  03/12 Initial Jobless Claims 08:30 7 Mar 220k - 216k -  
                   
  03/12 Continuing Claims 08:30 29 Feb 1733k - 1729k -  
                   
  03/12 Bloomberg Consumer Comfort 09:45 8 Mar - - 63.00 -  
                   
  03/13 Import Price Index MoM 08:30 Feb -1.00% - 0.00% -  
                   
  03/13 Import Price Index YoY 08:30 Feb -1.50% - 0.30% -  
                   
  03/13 Export Price Index MoM 08:30 Feb -0.40% - 0.70% -  
                   
  03/13 Export Price Index YoY 08:30 Feb - - 0.50% -  
                   
  03/13 U. of Mich. Sentiment 10:00 Mar P 95.00 - 101.00 -
                   
 
 
 
 
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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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