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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   95-08 (-04)  
 
  FN 2.5% Coupon   102-25 (-03.5)  
 
  Support   1.312%  
 
  Resistance   0.902%  
 
 
 
 
  Friday, March 26, 2021
 
 

Treasury Yields Advance as Banks are Freed from Pandemic Restrictions on Dividends

 
 
Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.6636, increasing 3.04 bps from prior closing of 1.6332.
US stocks rise, oil rebounds and long-dated Treasury yields advance after President Biden doubles the drive for vaccination goals. Additionally, the Federal Reserve has lifted pandemic restrictions on banks’ dividends. In terms of stocks, futures on the S&P 500 Index climbed 0.1% while the Stoxx Europe 600 Index climbed 0.6%. Vaccine-supply disputes continue in Europe, further deterioration is seen in China’s relations with the West, and the Suez Canal remains blocked. Dislodging the container vessel will take at least until Wednesday. This prolonged effort will indubitably amplify current disruptions in the global supply chains. Not only does this threaten costly delays for European companies that rely on Asian imports, but this also adds to the bottlenecks that have been seen in the ports of Los Angeles and Long Beach for the last five months. The current fear is that this incident will further damage Europe’s current logistical challenges which may result in canceled sailings, container shortages, and higher freight rates. US household spending declined in February along with incomes as the stimulus check boost began to fade. Purchases of goods and services have decreased 1.00% from the prior month and Personal Incomes fell 7.10%. As $1,400 direct payments are distributed among millions of Americans, spending and incomes are expected to surge in March. As of Wednesday, around 127 million stimulus payments have been sent out, which amass to be worth about $325 billion. These checks are expected to create more spending as vaccinations rise and economic activity picks up. In terms of currencies, The Bloomberg Dollar Spot Index saw little to no change while the euro gained 0.1% to $1.1777. Elsewhere, Bitcoin gained back some prior losses, now trading near $53,000. Reporting on Monday is the Dallas Fed Manufacturing Outlook Level of General Business Activity. 
The curve has bear-steepened with UST 10-Year yield up 3.04 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/22 Chicago Fed Nat Activity Index 05:30 Feb 0.72 -1.09 0.66 0.75  
                   
  03/23 Richmond Fed Manufact. Index 07:00 Mar 16.00 17.00 14.00 -  
                   
  03/24 MBA Mortgage Applications  04:00 19 Mar - -2.50% -2.20% -  
                   
  03/24 Durable Goods Orders 05:30 Feb P 0.60% -1.10% 3.40% 3.50%  
                   
  03/24 Markit US Manufacturing PMI 06:45 Mar P 59.50 59.00 58.60 -  
                   
  03/24 Markit US Composite PMI 06:45 Mar P - 59.10 59.50 -  
                   
  03/24 Markit US Services PMI 06:45 Mar P 60.10 60.00 59.80 -  
                   
  03/25 Initial Jobless Claims 05:30 20 Mar 730k 684k 770k 781k  
                   
  03/25 Continuing Claims 05:30 13 Mar 4000k 3870k 4124k 4134k  
                   
  03/25 GDP Price Index 05:30 4Q T 2.10% 2.00% 2.10% -  
                   
  03/26 PCE Deflator MoM 05:30 Feb 0.30% 0.20% 0.30% -  
                   
  03/26 PCE Deflator YoY 05:30 Feb 1.60% 1.60% 1.50% -  
                   
  03/26 U. of Mich. Sentiment 07:00 Mar F 83.60 84.90 83.00 -  
                   
 
 
 
 
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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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