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Market Commentary


 
Today's Coupons
 
  10-Year Notes   100-00 (-05.5)  
 
  FN 3.5% Coupon   100-18 (-02)  
 
  Support   3.237%  
 
  Resistance   2.584%  
 
 
 
 
Tuesday, March 19, 2019
 
 
Treasury Yields Rise ahead of FOMC Meeting
 
 
Market opened today’s session with treasuries edging lower across all maturities. 10-Year treasury yield is at 2.6267, 2.34 bps increased from prior closing of 2.6033.

US equity futures advanced ahead of the FOMC meeting on expectation that the Fed would deliver a dovish statement. Many now expect that the Fed will lower its interest rate forecasts to show little or no further tightening in 2019. Treasuries slipped and WTI crude rallied above $59 a barrel after OPEC and its allies committed to continue production cuts until at least June. On Brexit front, the UK government will be seeking an extension to its EU membership at this week’s summit in Brussels. It was reported that the EU leaders were planning to offer the UK a conditional Brexit extension earlier this morning and the pound extended gains on the news. Corporate earnings season continues with FedEx, Hermes, Tiffany, and Nike among the companies who are scheduled to post results this week.

In today’s economic calendar, Factor Orders in January remained unchanged from prior of 0.10% but came in short of consensus of 0.30%. Durable Goods Orders in January fell to 0.30% from 0.40% prior and consensus, and the core durables also declined to -0.20% from -0.10% prior. Lastly, Capital Goods New Orders came in line with both prior and consensus of 0.80%. The FOMC will kick off its two day meeting today and announce its rate decision at 11:00 AM (PT) tomorrow.

The curve has bear-steepened with UST 10-Year yield up 2.34 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/18 NAHB Housing Market Index 07:00 Mar 63.00 62.00 62.00 -  
                   
  03/19 Factory Orders 07:00 Jan 0.30% 0.10% 0.10% -  
                   
  03/19 Durable Goods Orders 07:00 Jan F 0.40% 0.30% 0.40% -  
                   
  03/20 MBA Mortgage Applications 04:00 15 Mar - - 2.30% -  
                   
  03/20 FOMC Rate Decision (Upper Bound) 11:00 20 Mar 2.50% - 2.50% -  
                   
  03/20 FOMC Rate Decision (Lower Bound) 11:00 20 Mar 2.25% - 2.25% -  
                   
  03/21 Philadelphia Fed Business Outlook 05:30 Mar 4.60 - -4.10 -  
                   
  03/21 Initial Jobless Claims 05:30 16 Mar 225k - 229k -  
                   
  03/21 Continuing Claims 05:30 9 Mar 1769k - 1776k -  
                   
  03/21 Bloomberg Consumer Comfort 06:45 17 Mar - - 60.80 -  
                   
  03/21 Leading Index 07:00 Feb 0.10% - -0.10% 0.00%  
                   
  03/22 Markit US Manufacturing PMI 06:45 Mar P 53.40 - 53.00 -  
                   
  03/22 Markit US Services PMI 06:45 Mar P 55.50 - 56.00 -  
                   
  03/22 Markit US Composite PMI 06:45 Mar P - - 55.50 -  
                   
  03/22 Existing Home Sales 07:00 Feb 5.10m - 4.94m -  
                   
  03/22 Existing Home Sales MoM 07:00 Feb 3.20% - -1.20% -  
                   
 
 
 
 
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  This information is provided solely for informational use and is not intended as trading or investment advice 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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