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Today's Coupons
 
  10-Year Notes   107-24 (+1-09.5)  
 
  FN 3.5% Coupon   103-01 (-07)  
 
  Support   2.630%  
 
  Resistance   0.336%  
 
 
 
 
  Thursday, March 12, 2020
 
 

Treasury Yields Decline as Investors Pine for More Policy Responses

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-year Treasury yield is at 0.6829, 18.66 bps decreased from prior closing of 0.8695.

The rout in global equities deepened this morning, triggering another NYSE circuit breaker which halted trading for 15 minutes. President Trump blamed the EU for failing to make efficient efforts to contain the virus early enough, allowing the virus spread to the US, and suspended travel from Europe for 30 days. China, South Korea, Iran, and Europe except for the UK which left the EU on Jan 31 are subject to US constraints. Italy announced closure of all pubs, restaurants, and non-essential businesses, and Denmark also closed all schools and advised workers to stay at home to contain the virus. On a bright side, China said the outbreak in the country is “generally over” after reporting only 15 more cases. The total confirmed cases are now approaching 130,000 with the death toll at 4,718. Tepid fiscal measures from Trump administration sparked a sharp demand in haven asset again, pushing Treasuries north. However, mortgage TBAs edged lower this morning. Elsewhere, WTI crude tumbled, heading toward $30 a barrel.

The headline PPI Final Demand in February declined to -0.60% from 0.50% prior vs. -0.10% consensus. However, the labor market continued to display its strength with most recent claims data. Initial Jobless Claims edged lower to 211k vs. 220k consensus, and Continuing Claims also declined to 1722k vs. 1733k consensus. The prior readings of 216k and 1729k were revised to 215k and 1733k, respectively. Lastly, Bloomberg Consumer Comfort slightly inched lower to 62.70 from 63.00 prior. Later today, the US Treasury is scheduled to auction off $50 billion of 4-week bills, $40 billion of 8-week bills, and $16 billion of 30-year bonds reopening.

The curve has bull-flattened with UST 10-Year yield down 18.66 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% -  
                   
  03/12 PPI Final Demand MoM 08:30 Feb -0.10% -0.60% 0.50% -  
                   
  03/12 PPI Final Demand YoY 08:30 Feb 1.80% 1.30% 2.10% -  
                   
  03/12 Initial Jobless Claims 08:30 7 Mar 220k 211k 216k 215k  
                   
  03/12 Continuing Claims 08:30 29 Feb 1733k 1722k 1729k 1733k  
                   
  03/12 Bloomberg Consumer Comfort 09:45 8 Mar - 62.70 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 -0.60% - 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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