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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   107-06 (+09)  
 
  FN 3.5% Coupon   105-23.5 (-03)  
 
  Support   2.594%  
 
  Resistance   0.5692%  
 
 
 
 
  Tuesday, April 14, 2020
 
 

Treasury Yields Fall as Coronavirus Outlook Appears to Improve

 
 
Market opened today’s session with treasuries advancing across all maturities. 10-Year Treasury yield is at 0.7425, 2.88 bps decreased from prior closing of 0.7713.

Stocks climbed this morning on signs of the coronavirus might be leveling off. JPMorgan and Wells Fargo led the rally even as their profits were hit by provisions that expect delinquencies in debt payments. Johnson and Johnson also advanced after posting stronger sales and earnings. Treasuries advanced and the dollar retreated against its major peers. Mortgages fell slightly this morning, underperforming Treasuries.   On the coronavirus front, President Trump declared his “total” authority to order states to reopen their economies yesterday.  However, states rebuffed his statement with some of the states agreeing to form regional alliances to coordinate in lifting restrictions. Elsewhere, WTI crude erased earlier gains as low demand caused by the pandemic outweighed the production cuts agreed by the major producers. The corporate earnings season will continue this week with Citigroup, Bank of America, and Goldman Sachs reporting their first quarter results on Wednesday and BlackRock on Thursday. We have a light economic calendar today; Export Price Index in March declined to -1.60% from -1.10% prior and Import Price Index also fell to -2.30% from a downwardly revised prior of -0.70%.

The curve has bull-flattened with UST 10-Year yield down 2.88 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/14 Import Price Index MoM 05:30 Mar -3.20% -2.30% -0.50% -0.70%  
                   
  04/14 Import Price Index YoY 05:30 Mar -5.00% -4.10% -1.20% -1.30%  
                   
  04/14 Export Price Index MoM 05:30 Mar -1.90% -1.60% -1.10% -  
                   
  04/14 Export Price Index YoY 05:30 Mar - -3.60% -1.30% -  
                   
  04/15 MBA Mortgage Applications 04:00 10 Apr - - -17.90% -  
                   
  04/15 Retail Sales Advance MoM 05:30 Mar -8.00% - -0.50% -  
                   
  04/15 Empire Manufacturing 05:30 Apr -35.00 - -21.50 -  
                   
  04/15 Capacity Utilization 06:15 Mar 74.00% - 77.00% -  
                   
  04/15 Net Long-term TIC Flows 13:00 Feb - - $20.90B -  
                   
  04/15 Total Net TIC Flows 13:00 Feb - - $122.90B -  
                   
  04/16 Housing Starts 05:30 Mar 1300k - 1599k -  
                   
  04/16 Housing Starts MoM 05:30 Mar -18.70% - -1.50% -  
                   
  04/16 Building Permits 05:30 Mar 1300k - 1464k 1452k  
                   
  04/16 Building Permits MoM 05:30 Mar -10.50% - -5.50% -6.30%  
                   
  04/16 Philadelphia Fed Business Outlook 05:30 Apr -30.00 - -12.70 -  
                   
  04/16 Initial Jobless Claims 05:30 11 Apr 5350k - 6606k -  
                   
  04/16 Continuing Claims 05:30 4 Apr - - 7455k -  
                   
  04/16 Bloomberg Consumer Comfort 06:45 12 Apr - - 49.90 -  
                   
  04/17 Leading Index 07:00 Mar -7.00% - 0.10% -
                   
 
 
 
 
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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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