Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   101-01.5 (-01.5)  
 
  FN 3.5% Coupon   101-05.5 (+01.5)  
 
  Support   3.237%  
 
  Resistance   2.342%  
 
 
 
 
Monday, April 08, 2019
 
 
Treasury Yields Edge Higher ahead of Corporate Earnings Season
 
 
Market opened today’s session with treasuries slightly inched lower across all maturities. 10-Year treasury yield is at 2.5007, 0.53 bp increased from prior closing of 2.4954.

Market kicked off this week in a cautious mood with main focus attuned to corporate earnings results. With major US banks set to post their results this week including JP Morgan Chase and Wells Fargo, many economists warned that this upcoming earnings season could be the first quarter of contracting results since 2016. Without further developments from the trade front, President Trump pressured the Fed once again last week to sustain growth. Last Friday, he said that the US economy would climb like a “rocket ship” if the Fed were to cut interest rates. On Brexit front, with April 12th being a deadline to leave the EU, either Brexit will have happened or it will be delayed by this Friday. Elsewhere, WTI crude continued to trade over $63 a barrel this morning.

Factory Orders in February came in line with expectation of -0.50%, a 0.50% decline from a revised prior of 0.00%. However, the core Factory Orders climbed to 0.30% from a revised prior of -0.10%. Durable Goods Orders in February came in unchanged from prior and with consensus of -1.60%. The core fell to -0.10% from prior of 0.10% while consensus also called for a 0.10% increase. The US Treasury is scheduled to auction off $42 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT) today. On Wednesday, the minutes from March FOMC meeting will be released at 11:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 0.53 bp.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/08 Factory Orders 07:00 Feb -0.50% -0.50% 0.10% 0.00%  
                   
  04/08 Durable Goods Orders 07:00 Feb F -1.60% -1.60% -1.60% -  
                   
  04/08 Durables Ex Transportation 07:00 Feb F 0.10% -0.10% 0.10% -  
                   
  04/09 NFIB Small Business Optimism 03:00 Mar 102.00 - 101.70 -  
                   
  04/09 JOLTS Job Openings 07:00 Feb 7550 - 7581 -  
                   
  04/10 MBA Mortgage Applications 04:00 5 Apr - - 18.60% -  
                   
  04/10 CPI MoM 05:30 Mar 0.40% - 0.20% -  
                   
  04/10 CPI YoY 05:30 Mar 1.80% - 1.50% -  
                   
  04/10 FOMC Meeting Minutes 11:00 20 Mar - - - -  
                   
  04/10 Monthly Budget Statement 11:00 Mar -$183.00b - -$234.00b -  
                   
  04/11 PPI Final Demand MoM 05:30 Mar 0.30% - 0.10% -  
                   
  04/11 PPI Final Demand YoY 05:30 Mar 1.90% - 1.90% -  
                   
  04/11 Initial Jobless Claims 05:30 6 Apr 210k - 202k -  
                   
  04/11 Continuing Claims 05:30 30 Mar 1735k - 1717k -  
                   
  04/11 Bloomberg Consumer Comfort 06:45 7 Apr - - 58.90 -  
                   
  04/12 Import Price Index MoM 05:30 Mar 0.40% - 0.60% -  
                   
  04/12 Import Price Index YoY 05:30 Mar -0.70% - -1.30% -  
                   
  04/12 Export Price Index MoM 05:30 Mar 0.20% - 0.60% -  
                   
  04/12 Export Price Index YoY 05:30 Mar - - 0.30% -  
                   
  04/12 U. of Mich. Sentiment 07:00 Apr P 98.10 - 98.40 -  
                   
 
 
 
 
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
 
 
   
 
  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  
 
©2019 Sun West Mortgage Company, Inc. All Rights Reserved