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Market Commentary

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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-09 (+04.5)  
 
  FN 3.5% Coupon   101-30 (+03)  
 
  Support   2.628%  
 
  Resistance   2.450%  
 
 
 
 
Tuesday, March 21, 2017
 
 
The UST 10-Year yield is at 2.460% this morning after closing at 2.462% yesterday.

In the overnight session, U.S. Treasuries sold-off across the curve but have begun to regain some ground since market opened this morning.

The only print today was the release of the current account balance, which indicated that the U.S. deficit narrowed from the revised -$116.00 Billion to -$112.40 Billion in the fourth quarter according to the Bureau of Economic Analysis (BEA). The $3.60 Billion decrease in deficit was largely due to a $19.90 Billion increase in primary income surplus as well as a $17.50 Billion increase in the deficit of goods. The deficit currently represents 2.40% of the GDP vs. 2.50% in the third quarter.

Yesterday, Chicago Fed President Evans reinforced that the Fed is looking to raise interest rates a total of 3 times this year but open to 4 hikes if the economy and inflation really picked up. Later today, Kansas City Fed President George (known to be one of the more hawkish members) will discuss the U.S. economy and monetary policy in DC. Cleveland Fed President Mester, another hawkish member, will speak at the University of Richmond, VA; she is also widely expected to pose an optimistic view on the economy and support higher interest rates. Investors will focus on indications for the forthcoming stance on monetary policy.

The curve has bull-flattened with the UST 10-Year 0.2 bp down from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/20 Chicago Fed Nat Activity Index 05:30 Feb 0.03 0.34 -0.05 -0.02  
                   
  03/21 Current Account Balance 05:30 4Q -$129.00 B -$112.40 B -$113.00 B -$116.00 B  
                   
  03/22 MBA Mortgage Applications 04:00 17 Mar - - 3.10% -  
                   
  03/22 FHFA House Price Index MoM 06:00 Jan 0.40% - 0.40% -  
                   
  03/22 Existing Home Sales 07:00 Feb 5.55 M - 5.69 M -  
                   
  03/22 Existing Home Sales MoM 07:00 Feb -2.50% - 3.30% -  
                   
  03/23 Initial Jobless Claims 05:30 18 Mar 240 K - 241 K -  
                   
  03/23 Continuing Claims 05:30 11 Mar 2040 K - 2030 K -  
                   
  03/23 Bloomberg Consumer Comfort 06:45 19 Mar - - 51.00 -  
                   
  03/23 New Home Sales 07:00 Feb 564 K - 555 K -  
                   
  03/23 New Home Sales MoM 07:00 Feb 1.60% - 3.70% -  
                   
  03/23 Kansas City Fed Manf. Activity 08:00 Mar 14.00 - 14.00 -  
                   
  03/24 Durable Goods Orders 05:30 Feb P 1.40% - 2.00% -  
                   
  03/24 Durables Ex Transportation 05:30 Feb P 0.60% - 0.00% -  
                   
  03/24 Markit US Manufacturing PMI 06:45 Mar P 54.80 - 54.20 -  
                   
 
 
 
 
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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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