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Market Commentary



 
Today's Coupons
 
  10-Year Notes   95-11.5 (+12)  
 
  FN 2.5% Coupon   103-04.5 (+07)  
 
  Support   1.269%  
 
  Resistance   0.798%  
 
 
 
 
  Thursday, April 8, 2021
 
 

US Equity Futures Gain with Europe Stocks; Treasury Yields Fall

 
 
Market opened today's session with treasuries higher across all maturities. 10-Year Treasury yield is at 1.6351, 3.88 bps lower than previous closing of 1.6739.
US equity futures gained with European stocks on Thursday as the Federal Reserve committed to supportive policies. These gains were held after data showed first-time applications for unemployment insurance unexpectedly rose last week. Contracts on the S&P 500 also rose following minutes from the latest Fed meeting on Wednesday. Treasury yields fell along with the dollar. The Stoxx Europe 600 Index advanced 0.4%, tracking US futures higher and heading for a fresh record close. Anglo American Plc saw a 3% increase after stating plans to spin off thermal coal operations in South Africa. Additionally, AstraZeneca Plc also had gains after EU governments failed to agree on a policy that would limit the use of the company’s coronavirus vaccine due to potential side-effects. In the US, the uneven reopening of different states has distorted the overall positive trend. Additionally, Initial Jobless Claims have unexpectedly increased for a second week in a row. Initial claims in regular state programs increased by 16,000 to 744,000 in the week ended April 3, Labor Department data showed on Thursday. This increase shows that labor-market recovery still has a long way to go in order to recover the millions of jobs that were lost in the pandemic. Nevertheless, companies are expected to increase their hiring as vaccination accelerates and business restrictions are eased. This should lead to April payrolls moderately accelerating beyond the gains of March. Treasury Secretary Janet Yellen elaborated on details related to a plan to bring back $2 trillion in corporate profits into the US tax net. This plan would help fund the government's spending initiatives while potentially reducing reliance on more borrowing that could cause rates to increase. During this week, the IMF and World Bank Group 2021 Spring Meetings continue to take place virtually. On Thursday, Federal Reserve Chairman Jerome Powell will elaborate on the current state of the global economy in a panel. China’s consumer and producer prices data are due on Friday.
The curve has bull-flattened with UST 10-Year yield down 3.88 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/05 Markit US Services PMI 06:45 Mar F 60.20 60.40 60.00 -  
                   
  04/05 Markit US Composite PMI 06:45 Mar F - 59.70 59.10 -  
                   
  04/05 Factory Orders 07:00 Feb -0.50% -0.80% 2.60% 2.70%  
                   
  04/05 Durable Goods Orders 07:00 Feb F -1.10% -1.20% -1.10% -  
                   
  04/05 Durables Ex Transportation 07:00 Feb F -0.90% -0.90% -0.90% -  
                   
  04/06 JOLTS Job Openings 07:00 Feb 6900 7367 6917 7099  
                   
  04/07 MBA Mortgage Applications 04:00 2 Apr - -5.10% -2.20% -  
                   
  04/08 Initial Jobless Claims 05:30 3 Apr 680k 744k 719k 728k  
                   
  04/08 Continuing Claims 05:30 27 Mar 3638k 3734k 3794k 3750k  
                   
  04/09 PPI Final Demand MoM 05:30 Mar 0.50% - 0.50% -  
                   
  04/09 PPI Final Demand YoY 05:30 Mar 3.80% - 2.80% -
                   
 
 
 
 
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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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