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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   94-30 (-17)  
 
  FN 2.5% Coupon   102-18.5 (-07)  
 
  Support   1.275%  
 
  Resistance   0.889%  
 
 
 
 
  Wednesday, March 17, 2021
 
 

Treasury Yields Rise Ahead of FOMC Results

 
 
Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.6585, 4.06 bps increased from prior closing of 1.6179.

US stocks opened lower this morning as Treasury yields pushed towards a one-year high. Early morning movers include fuel-cell maker Plug Power Inc., which saw shares lower after disclosing an accounting error that affected reported results for the years of 2018, '19, and '20. All eyes will be on the Fed later today, with FOMC results to be released, from which market participants are expecting no significant change to the Fed Funds rate. Elsewhere, Bitcoin hovered around $55,000, all the while Gold slightly lowered by 0.2% to $1,728.59 an ounce. WTI crude noted a 0.8% decline following a statement by the International Energy Agency, indicating there was plenty of supply to meet current and future oil demand. On the economic front, MBA Mortgage Applications lowered by 2.20% for the week ending March 12. Notably, purchases saw an increase of 1.80%, following an increase of 7.20% a week prior, meanwhile refis continued their downward trend, falling by 4.20% for the week. Refis accounted for 62.9% of loans, after having accounted for 64.5% of loans the week prior, all the while the 30 year fixed rate stood at 3.28%. Housing Starts for the month of February failed to meet expectations of 1,560K, after having reported at 1,421K. In the details, Residential starts and applications to build both noted declines of 10.30% and 10.80%, respectively, all the while backlogs continued to push past a 2006 high. Industry headwinds still remain with rising material costs, which indirectly push up housing prices, and as a result could simmer down the current pace of home purchases. Reporting tomorrow are Initial Jobless Claims and the Leading Index, both of which are expected at 700K and 0.30%, respectively.

The curve has bear-steepened with UST 10-Year yield up 4.06 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/15 Empire Manufacturing 05:30 Mar 15.00 17.40 12.10 -  
                   
  03/16 Import Price Index MoM 05:30 Feb 1.00% 1.30% 1.40% -  
                   
  03/16 Import Price Index YoY 05:30 Feb 2.60% 3.00% 0.90% 1.00%  
                   
  03/17 MBA Mortgage Applications 04:00 12 Mar - -2.20% -1.30% -  
                   
  03/17 Building Permits 05:30 Feb 1750k 1682k 1881k 1886k  
                   
  03/17 Building Permits MoM 05:30 Feb -7.20% -10.80% 10.40% 10.70%  
                   
  03/17 Housing Starts 05:30 Feb 1560k 1421k 1580k 1584k  
                   
  03/17 Housing Starts MoM 05:30 Feb -1.30% -10.30% -6.00% -5.10%  
                   
  03/18 Initial Jobless Claims 05:30 13 Mar 700k - 712k -  
                   
  03/18 Continuing Claims 05:30 6 Mar 4034k - 4144k -  
                   
  03/18 Leading Index 07:00 Feb 0.30% - 0.50% -
                   
 
 
 
 
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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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