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Market Commentary


 
Today's Coupons
 
  10-Year Notes   101-18.5 (+26.5)  
 
  FN 3.5% Coupon   101-12.5 (+12)  
 
  Support   3.237%  
 
  Resistance   2.443%  
 
 
 
 
Friday, March 22, 2019
 
 
Treasury Yields Lower Further as Concerns over Global Economy Grow
 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year treasury yield is at 2.4532, 8.37 bps decreased from prior closing of 2.5369.

Growing concerns over slowdown in global economy were renewed as Germany printed the deepest slump in manufacturing in over six years. The news reverberated through markets; ultimately driving US stocks index futures down as well. Nike also pressured equity futures as its stocks fell nearly 5% from weak quarterly sales growth. On the trade front, despite of upbeat sentiment toward reaching a deal soon from President Trump, American officials downplayed the chances of a breakthrough soon as both sides kept going back and forth. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will be in Beijing for meetings at the end of next week, and Chinese Vice Premier Liu He is scheduled to attend meetings in Washington in April. Treasuries sharply advanced and WTI crude declined below $60 a barrel this morning.

Markit US Manufacturing PMI in March fell to 52.50 from 53.00 prior vs. 53.50 consensus, driving the treasury yields further down this morning. Wholesale Inventories in January increased to 1.20% from 1.10% prior, well above estimate of 0.10%. Existing Home Sales in February, on the other hand, came in higher at 5.51m from 4.93m revised prior vs. 5.10m consensus. Lastly, Monthly Budget Statement for February will be released at 11:00 AM (PT) today.

The curve has bull-flattened with UST 10-Year yield down 8.37 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 - 1.60% 2.30% -  
                   
  03/20 FOMC Rate Decision (Upper Bound) 11:00 20 Mar 2.50% 2.50% 2.50% -  
                   
  03/20 FOMC Rate Decision (Lower Bound) 11:00 20 Mar 2.25% 2.25% 2.25% -  
                   
  03/21 Philadelphia Fed Business Outlook 05:30 Mar 4.80 13.70 -4.10 -  
                   
  03/21 Initial Jobless Claims 05:30 16 Mar 225k 221k 229k 230k  
                   
  03/21 Continuing Claims 05:30 9 Mar 1770k 1750k 1776k 1777k  
                   
  03/21 Bloomberg Consumer Comfort 06:45 17 Mar - 61.50 60.80 -  
                   
  03/21 Leading Index 07:00 Feb 0.10% 0.20% -0.10% 0.00%  
                   
  03/22 Markit US Manufacturing PMI 06:45 Mar P 53.50 52.50 53.00 -  
                   
  03/22 Markit US Services PMI 06:45 Mar P 55.50 54.80 56.00 -  
                   
  03/22 Markit US Composite PMI 06:45 Mar P - 54.30 55.50 -  
                   
  03/22 Existing Home Sales 07:00 Feb 5.10m 5.51m 4.94m 4.93m  
                   
  03/22 Existing Home Sales MoM 07:00 Feb 3.20% 11.80% -1.20% -1.40%  
                   
 
 
 
 
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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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