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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   106-9.5 (+1-13.5)  
 
  FN 3.5% Coupon   103-01.5 (+05.5)  
 
  Support   2.612%  
 
  Resistance   0.336%  
 
 
 
 
  Monday, March 16, 2020
 
 

Treasury Yields Lower as Trading Halts Again

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 0.7797, 18.06 bps decreased from prior closing of 0.9603.

The Fed dramatically announced its second emergency rate cut, reducing its benchmark close to zero on Sunday night. The bank also added that it would increase its bond purchases by $700 billion to stabilize the markets and liquidity. The central banks of South Korean and New Zealand followed but stocks sunk this morning despite the efforts from those central banks. Stocks plunged 8.1% at the open, triggering a circuit breaker once again. Treasuries surged and oil resumed losses with WTI crude trading below $29 a barrel this morning. The total confirmed cases of the coronavirus in the US now reached 3,774 and 69 deaths. With rapidly deteriorating situation on the virus front, the CDC also recommended all gatherings of more than 50 people be cancelled for the next eight weeks. In the economic calendar, the negative impacts from the pandemic started to show as the March Empire Manufacturing data plunged to -21.50 from 12.90 prior vs. 3.00 consensus. Later today, the US Treasury is scheduled to auction off 13-week and 26-week bills.

The curve has bull-flattened with UST 10-Year yield down 18.06 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/16 Empire Manufacturing 05:30 Mar 3.00 -21.50 12.90 -  
                   
  03/16 Net Long-term TIC Flows 13:00 Jan - - $85.60B -  
                   
  03/16 Total Net TIC Flows 13:00 Jan - - $78.20B -  
                   
  03/17 Retail Sales Advance MoM 05:30 Feb 0.20% - 0.30% -  
                   
  03/17 Capacity Utilization 06:15 Feb 77.10% - 76.80% -  
                   
  03/17 JOLTS Job Openings 07:00 Jan 6401 - 6423 -  
                   
  03/17 NAHB Housing Market Index 07:00 Mar 74 - 74 -  
                   
  03/18 MBA Mortgage Applications 04:00 13 Mar - - 55.40% -  
                   
  03/18 Housing Starts 05:30 Feb 1502k - 1567k -  
                   
  03/18 Housing Starts MoM 05:30 Feb -4.20% - -3.60% -  
                   
  03/18 Building Permits 05:30 Feb 1500k - 1551k 1550k  
                   
  03/18 Building Permits MoM 05:30 Feb -3.20% - 9.20% -  
                   
  03/19 Philadelphia Fed Business Outlook 05:30 Mar 11.00 36.70 17.00 -  
                   
  03/19 Initial Jobless Claims 05:30 14 Mar 210k 210k 205k 206k  
                   
  03/19 Continuing Claims 05:30 7 Mar 1717k 1726k 1698k 1701k  
                   
  03/19 Bloomberg Consumer Comfort 06:45 15 Mar          
                   
  03/19 Leading Index 07:00 Feb 0.40% 0.80% -0.30% -  
                   
  03/20 Existing Home Sales 07:00 Feb 5.44m 5.46m 5.54m 5.53m  
                   
  03/20 Existing Home Sales MoM 07:00 Feb -1.80% -1.30% 3.60% 3.90%
                   
 
 
 
 
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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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