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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   106-23.5 (-13)  
 
  FN 3.5% Coupon   103-07 (-17)  
 
  Support   2.639%  
 
  Resistance   0.336%  
 
 
 
 
  Wednesday, March 11, 2020
 
 

Treasury Yields Decline on Missing Stimulus

 
 
Market opened today’s session with treasuries advancing across all maturities. 10-year Treasury yield is at 0.7318, 7.12 bps decreased from prior closing of 0.8030.

Equities reversed yesterday’s gain as the fiscal stimulus package promised by President Trump remained uncertain. President Trump suggested yesterday a 0% payroll tax rate until the end of the year to combat the threat that the coronavirus poses to the economic growth. However, the timing of the policy being implemented remains uncertain and the White House is yet to release details of the fiscal response. The total confirmed cases of the virus now exceeded 121,000 with the death toll at 4,373. In the UK, the Bank of England also cut its main rate by 50 basis points to 0.25% this morning which was its first emergency move since the financial crisis. Meanwhile, former Vice President Joe Biden cemented his position as front-runner for the Democratic presidential nomination with primary victories yesterday. Elsewhere, WTI crude edged lower again after rebounding from its sharpest decline since 1991, trading above $33 a barrel this morning.

MBA mortgage applications index rose 55.40% after rising 15.10% in prior week. Both purchases and refinances increased 5.60% and 78.60% after falling 2.70% and rising 26.00% in prior week, respectively. The February headline CPI remained unchanged from prior reading of 0.10% and the core also came in line with both prior and consensus of 0.20%. Later today, Monthly Budget Statement from February will be released at 11:00 AM (PT), and the US Treasury is scheduled to auction off $24 billion of 10-year notes reopening at 10:00 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 7.12 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 - 55.40% 15.10% -  
                   
  03/11 CPI MoM 08:30 Feb 0.00% 0.10% 0.10% -  
                   
  03/11 CPI YoY 08:30 Feb 2.20% 2.30% 2.50% -  
                   
  03/11 CPI Index NSA 08:30 Feb 258.455 258.678 257.971 -  
                   
  03/11 CPI Core Index SA 08:30 Feb 266.913 267.070 266.476 -  
                   
  03/11 Real Avg Weekly Earnings YoY 08:30 Feb - 0.70% 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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