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Today's Coupons
 
  10-Year Notes   95-12.5 (+12)  
 
  FN 2.5% Coupon   103-06.5 (+09.5)  
 
  Support   1.269%  
 
  Resistance   0.798%  
 
 
 
 
  Tuesday, April 13, 2021
 
 

Treasury Yields Decline as S&P 500 Reaches All-Time Highs; Vaccine Pause Downplayed

 
 
Today's market session opened with treasuries higher across all maturities. The 10-year Treasury yield is at 1.6570, 0.87 bp lower than prior closing of 1.6657.

US Stocks gain with growth shares outperforming value stocks as investors bet that rising inflation won’t be enough to slow down stimulus progress. Even after the Johnson & Johnson vaccination halt, the S&P 500 reached a new all-time high. The Nasdaq 100 also rose to a record high with tech shares leading. Johnson & Johnson shares sank as much as 3.2%  as U.S. health officials called for an immediate pause in using the company’s single-dose Covid-19 vaccine after six women who received it developed a rare and severe form of blood clotting. Meanwhile, Moderna Inc. and Pfizer Inc. shares advanced. More than 6.8 million doses of the J&J vaccine have been administered in the U.S. through Monday, according to the CDC and FDA. J&J said in a statement that it’s decided to delay the rollout of its vaccine in Europe. Walgreens Boots Alliance Inc. and CVS Health Corp. said they would pause immediately. Despite this pause, the US expects to have enough coronavirus vaccines to meet US demand by May. Elsewhere, investors sold travel shares such as Carnival Corp. and Royal Caribbean Cruises Ltd. while flocking back to stay-at-home companies. Fund managers across the world now see inflation and higher taxes as a bigger threat than Covid-19. On Tuesday, the Treasury plans to auction 30-year bonds after sales of three- and 10-year notes attracted decent demand on Monday. Meanwhile, Bitcoin jumped to an all-time high as the mood in cryptocurrencies turned bullish before Coinbase Global Inc. goes public. This week, financial institutions such as JPMorgan Chase & Co. and Goldman Sachs will report first-quarter earnings. On Tuesday, the US will release inflation data. On Wednesday, The Economic Club of Washington will host Fed Chair Jerome Powell for a Q&A and the US Federal Reserve will release the Beige Book. Initial Jobless Claims, Industrial Production and Retail Sales data will be released on Thursday.

The curve has bull-steepened with the UST 10-Year yield down 0.87 bp.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/13 NFIB Small Business Optimism 03:00 Mar 98.50 98.20 95.80 -  
                   
  04/13 CPI MoM 05:30 Mar 0.50% 0.60% 0.40% -  
                   
  04/13 CPI YoY 05:30 Mar 2.50% 2.60% 1.70% -  
                   
  04/13 CPI Index NSA 05:30 Mar 264.700 264.877 263.014 -  
                   
  04/13 CPI Core Index SA 05:30 Mar 270.970 271.214 270.299 -  
                   
  04/14 MBA Mortgage Applications 04:00 9 Apr - - -5.10% -  
                   
  04/15 Initial Jobless Claims 05:30 10 Apr 700k - 744k -  
                   
  04/15 Continuing Claims 05:30 3 Apr 3700k - 3734k -  
                   
  04/16 Building Permits 07:00 Mar 1750k - 1682k 1720k  
                   
  04/16 Building Permits MoM 05:30 Mar 1.70% - -10.80% -8.80%  
                   
  04/16 Housing Starts 05:30 Mar 1611k - 1421k -  
                   
  04/16 Housing Starts MoM 05:30 Mar 13.40% - -10.30% -  
                   
  04/16 U. of Mich. Sentiment 07:00 Apr P 89.00 - 84.90 -
                   
 
 
 
 
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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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