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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   108-19 (-1-03.5)  
 
  FN 3.5% Coupon   103-26 (-13)  
 
  Support   2.639%  
 
  Resistance   0.336%  
 
 
 
 
  Tuesday, March 10, 2020
 
 

Treasury Yields Climb on Possible Stimulus

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-year Treasury yield is at 0.6334, 9.27 bps increased from prior closing of 0.5407.

Stocks rebounded earlier on Trump Administration stimulus to offset the negative impact from the coronavirus with S&P 500 triggering its upside limit. However, the timing of the stimulus remained unclear. President Trump said Monday that his administration would discuss a possible payroll tax cut or relief with Congress. Meanwhile, oil started rebounding this morning after posting its worst day since 1991. On the coronavirus front, Italy and Iran became the countries with the most confirmed cases outside mainland China. Italy added nationwide travel restrictions to its effective lockdown of the northern region of the country in response. The total confirmed cases now surpassed 115,000 with the death toll at 4,087. Yesterday, the unprecedented demand in safe haven pushed the 10-year Treasury yield down to 0.318% at one point and brought the entire US yield curve below 1%. However, the yields rebounded this morning with the 30 year yield climbing back above 1%.

We have a fairly light economic calendar today. NFIB Small Business Optimism in February unexpectedly climbed to 104.50 from 104.30 prior vs. 102.80 consensus, indicating strength in the economy before the coronavirus fear ramped up. Later today, the US Treasury is scheduled to auction off $38 billion of 3-year notes at 10:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 9.27 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/09 No Data - - - - - -  
                   
  03/10 NFIB Small Business Optimism 06:00 Feb 102.80 104.50 104.30 -  
                   
  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 258.455 - 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 -236.80B - -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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