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Market Commentary



 
Today's Coupons
 
  10-Year Notes   107-03 (+06)  
 
  FN 3.5% Coupon   106-02 (+02.5)  
 
  Support   2.594%  
 
  Resistance   0.569%  
 
 
 
 
  Thursday, April 9, 2020
 
 

Treasury Yields Slightly Lower as Fed Releases New Measures

 
 
Market opened today’s session with treasuries advancing across all maturities. 10-year Treasury yield is at 0.7333, 3.89 bps decreased from prior closing of 0.7722.

Stocks headed for a strong weekly gain as it rose for the third time in four days after the Fed released new measures to cushion the economic fallout from the pandemic as much as $2.3 trillion in additional aid. Fed Chair Powell said that the Fed was committed to using all its powers “forcefully, proactively, and aggressively”. He also added that he expects the economic rebound to be robust after restrictions aimed at containing the virus are lifted. Treasuries slightly edged higher, and mortgages production coupons outperformed Treasuries as well. Elsewhere, WTI crude extended gains after Russia announced that it was willing to reduce production by 1.6 million barrels per day, trading above $26 a barrel. The highlight of the economic data released today was again the jobless data. Initial Jobless Claims surged to 6606k, exceeding expectations of 5500k. The third straight climb mounted to a total of 16.8 million in three weeks and Continuing Claims also surged to 7455k from an upwardly revised prior of 3059k, underscoring the fallout from the virus. Both the headline and the core PPI in March increased to -0.20% and 0.20% from prior readings of -0.60% and -0.30%, respectively. Lastly, University of Michigan plunged to 71.00 from prior of 89.10.

The curve has bull-flattened with UST 10-Year yield down 3.89 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 - -17.90% 15.30% -  
                   
  04/09 PPI Final Demand MoM 05:30 Mar -0.40% -0.20% -0.60% -  
                   
  04/09 PPI Final Demand YoY 05:30 Mar 0.50% 0.70% 1.30% -  
                   
  04/09 Initial Jobless Claims 05:30 4 Apr 5500k 6606k 6648k 6867k  
                   
  04/09 Continuing Claims 05:30 28 Mar 8236k 7455k 3029k 3059k  
                   
  04/09 Bloomberg Consumer Comfort 06:45 5 Apr - 49.90 56.30 -  
                   
  04/09 U. of Mich. Sentiment 07:00 Apr P 75.00 71.00 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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