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Market Commentary



 
Today's Coupons
 
  10-Year Notes   106-26.5 (-1-00)  
 
  FN 3.5% Coupon   105-28.5 (-02)  
 
  Support   2.594%  
 
  Resistance   0.569%  
 
 
 
 
  Tuesday, April 7, 2020
 
 

Treasury Yields Move Higher as Stocks Extend Rally on Optimism around Virus

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-year Treasury yield is at 0.7565, 8.67 bps increased from prior closing of 0.6698.

Stocks rallied for a second day amid continuing optimism that the spread of the coronavirus may be slowing after the number of newly confirmed cases declined. Today’s gains were led by cruise lines, airlines, and resorts stocks that had been heavily affected by the coronavirus outbreak. Investor sentiment was lifted on the positive news despite NFIB Small Business Optimism collapsed in March to 96.40 from 104.50 in February. Sentiment among US small businesses fell by the most on record since 1986 as the outlook rapidly deteriorated due to the pandemic. Treasuries extended losses and the dollar weakened but mortgages managed to edge higher this morning. Elsewhere, WTI crude rallied above $26 a barrel as Russia and Saudi Arabia appeared to be moving toward a deal to call off their price war. Later today, the US Treasury is scheduled to auction off $25 billion of 10-year notes reopening, and lastly, JOLTS Job Opening unexpectedly posted 6882 vs. consensus of 6500 in February.

The curve has bear-steepened with UST 10-Year yield up 8.67 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/06 No Data - - - - - -  
                   
  04/07 JOLTS Job Openings 07:00 Feb 6500 6882 6963 7012  
                   
  04/08 MBA Mortgage Applications 04:00 3 Apr - - 15.30% -  
                   
  04/09 PPI Final Demand MoM 05:30 Mar -0.40% - -0.60% -  
                   
  04/09 PPI Final Demand YoY 05:30 Mar 0.50% - 1.30% -  
                   
  04/09 Initial Jobless Claims 05:30 4 Apr 5000k - 6648k -  
                   
  04/09 Continuing Claims 05:30 28 Mar - - 3029k -  
                   
  04/09 Bloomberg Consumer Comfort 06:45 5 Apr - - 56.30 -  
                   
  04/09 U. of Mich. Sentiment 07:00 Apr P 75.00 - 89.10 -  
                   
  04/10 CPI Core Index SA 05:30 Mar 266.721 - 267.070 -  
                   
  04/10 CPI MoM 05:30 Mar -0.30% - 0.10% -  
                   
  04/10 CPI YoY 05:30 Mar 1.60% - 2.30% -  
                   
  04/10 CPI Index NSA 05:30 Mar 258.144 - 258.678 -  
                   
  04/10 Real Avg Weekly Earnings YoY 05:30 Mar - - 0.60% -
                   
 
 
 
 
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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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