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Market Commentary



 
Today's Coupons
 
  10-Year Notes   108-27.5 (+11.5)  
 
  FN 3.5% Coupon   106-00 (+02)  
 
  Support   2.594%  
 
  Resistance   0.336%  
 
 
 
 
  Friday, April 3, 2020
 
 

U.S. Stocks Fluctuate on Jobs Report, Treasury Yields Little Unchanged

 
 
Market opened today’s session with treasuries drifting across all maturities. 10-Year Treasury yield is at 0.5840, 1.50 bps decreased from prior closing of 0.5990.

U.S. employment plunged in March for its first decline since 2010 as the U.S. labor market witnessed the widespread devastation of the coronavirus pandemic. March nonfarm payrolls fell 701k, with private payrolls down 713k and government payrolls up 12k. Private service-providing payrolls fell 713k. The decline in March payroll is significantly worse than expectations. The consensus was for a 100k decline in headline payrolls and a 117k decline in private payrolls. Manufacturing payrolls fell 18k and construction payrolls fell 29k. In the household report, the unemployment rate rose from its 50-year low of 3.5% to 4.4% as 1.3 million more people reported as unemployed. U.S. Stocks were mixed on the employment data, the dollar held gains, and treasuries remained steady. Also on the calendar, Markit US Services PMI rose to 39.80 in March from 39.10 prior, and Markit US Composite PMI rose to 40.90 from 40.50 prior. Lastly, the March ISM Non-Manufacturing Index came in at 52.50 following a reading of 57.30 prior.

The curve has bull-flattened with UST 10-Year yield down 1.50 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% 0.30% 0.43% 0.41%  
                   
  03/31 S&P CoreLogic CS 20-City YoY NSA 06:00 Jan 3.20% 3.08% 2.85% 2.84%  
                   
  04/01 MBA Mortgage Applications 04:00 27 Mar - 15.30% -29.40% -  
                   
  04/01 ADP Employment Change 05:15 Mar -150k -27k 183k 179k  
                   
  04/01 Markit US Manufacturing PMI 06:45 Mar F 48.00 48.50 49.20 -  
                   
  04/01 Construction Spending MoM 07:00 Feb 0.60% -1.30% 1.80% 2.80%  
                   
  04/01 ISM Manufacturing 07:00 Mar 44.50 49.10 50.10 -  
                   
  04/01 ISM Prices Paid 07:00 Mar 41.80 37.40 45.90 -  
                   
  04/02 Initial Jobless Claims 05:30 28 Mar 3763k 6648k 3283k 3307k  
                   
  04/02 Continuing Claims 05:30 21 Mar 4941k 3029k 1803k 1784k  
                   
  04/02 Bloomberg Consumer Comfort 06:45 29 Mar - 56.30 59.70 -  
                   
  04/02 Durable Goods Orders 07:00 Feb F 1.20% 1.20% 1.20% -  
                   
  04/02 Durables Ex Transportation 07:00 Feb F -0.60% -0.60% -0.60% -  
                   
  04/03 Change in Nonfarm Payrolls 05:30 Mar -100k -701k 273k 275k  
                   
  04/03 Average Hourly Earnings MoM 05:30 Mar 0.20% 0.40% 0.30% -  
                   
  04/03 Average Hourly Earnings YoY 05:30 Mar 3.00% 3.10% 3.00% -  
                   
  04/03 Markit US Services PMI 06:45 Mar F 38.50 39.80 39.10 -  
                   
  04/03 Markit US Composite PMI 06:45 Mar F - 40.90 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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