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Market Commentary



 
Today's Coupons
 
  10-Year Notes   108-08.5 (+13)  
 
  FN 3.5% Coupon   106-04 (+14.5)  
 
  Support   2.594%  
 
  Resistance   0.336%  
 
 
 
 
  Monday, March 30, 2020
 
 

Treasury Yields Decline Further on Optimism for Virus Testing

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 0.6133, 6.13 bps decreased from prior closing of 0.6746.

Stocks opened higher along with Treasuries as investors saw optimism around virus testing. Health care sector led today’s gain in equities as Abbott Laboratories surged after unveiling a five-minute coronavirus test and Johnson & Johnson announced a lead vaccine candidate for the virus. However, they noted that human testing will begin in September. Also, President Trump abandoned his previous goal yesterday to reopen the US economy by Easter, and extended the guidelines to practice social distancing until April 30th. He also added that the death rate from the virus would peak in two weeks. The total confirmed cases exceeded 740,000 globally, and reached 143,055 in the US, adding to uncertainty over when the quarantine measures will be removed. Elsewhere, WTI crude extended its recent losses, trading around $20 a barrel this morning, and both gold and silver dipped as well. Pending Home Sales in February declined to 2.40% from an upwardly revised prior of 5.30% but came in above consensus of -1.80%.

The curve has bull-flattened with UST 10-Year yield down 6.13 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  03/30 Pending Home Sales MoM 07:00 Feb -1.80% 2.40% 5.20% 5.30%  
                   
  03/31 S&P CoreLogic CS 20-City MoM SA 06:00 Jan 0.40% - 0.43% -  
                   
  03/31 S&P CoreLogic CS 20-City YoY NSA 06:00 Jan 3.20% - 2.85% -  
                   
  04/01 MBA Mortgage Applications 04:00 27 Mar - - -29.40% -  
                   
  04/01 ADP Employment Change 05:15 Mar -150k - 183k -  
                   
  04/01 Markit US Manufacturing PMI 06:45 Mar F 48.00 - 49.20 -  
                   
  04/01 Construction Spending MoM 07:00 Feb 0.60% - 1.80% -  
                   
  04/01 ISM Manufacturing 07:00 Mar 45.00 - 50.10 -  
                   
  04/01 ISM Prices Paid 07:00 Mar 41.60 - 45.90 -  
                   
  04/02 Initial Jobless Claims 05:30 28 Mar 3500k - 3283k -  
                   
  04/02 Continuing Claims 05:30 21 Mar 4882k - 1803k -  
                   
  04/02 Bloomberg Consumer Comfort 06:45 29 Mar - - 59.70 -  
                   
  04/02 Durable Goods Orders 07:00 Feb F 1.20% - 1.20% -  
                   
  04/02 Durables Ex Transportation 07:00 Feb F -0.60% - -0.60% -  
                   
  04/03 Change in Nonfarm Payrolls 05:30 Mar -100k - 273k -  
                   
  04/03 Average Hourly Earnings MoM 05:30 Mar 0.20% - 0.30% -  
                   
  04/03 Average Hourly Earnings YoY 05:30 Mar 3.00% - 3.00% -  
                   
  04/03 Markit US Services PMI 06:45 Mar F 38.50 - 39.10 -  
                   
  04/03 Markit US Composite PMI 06:45 Mar F - - 40.50 -
                   
 
 
 
 
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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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