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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   108-19.5 (+11)  
 
  FN 3.5% Coupon   105-17.5 (00)  
 
  Support   2.541%  
 
  Resistance   0.547%  
 
 
 
 
  Thursday, April 30, 2020
 
 

Treasury Yields Fall as Stocks Sink on Unemployment Figures

 
 
Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 0.5904, 3.65 bps decreased from prior closing of 0.6269.

US and European stocks slumped as investors digested more dismal economic data along with corporate results from major tech companies. Initial Jobless Claims again exceeded consensus of 3.5 million at 3.839 million, bringing the six-week total to more than 30 million. Continuing Claims also rose to 17.992 million from a downwardly revised prior of 15.818 million. Personal Income and Spending plunged to -2.00% and -7.50% in March from 0.60% and 0.20% prior as well, respectively. The ECB added more pressure on stocks after they said that they were prepared to increase their emergency asset purchase program and the euro area could shrink 12% this year. On a positive note, big tech companies; Microsoft, Facebook, and Tesla posted promising revenue results despite the pandemic. Apple, Amazon, and Twitter will continue the tech theme when they report their results after the bell today. Treasuries advanced and oil extended a rebound from earlier tumble, trading above $17 a barrel. In the remainder of the economic calendar, MNI Chicago PMI fell sharply to 35.40 from a prior reading of 47.80 and lastly, Bloomberg Consumer Comfort also dropped to 39.50 from 41.40 prior.

The curve has bull-flattened with UST 10-Year yield down 3.65 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/27 Dallas Fed Manf. Activity 07:30 Apr -75.00 -73.70 -70.00 -  
                   
  04/28 Wholesale Inventories MoM 05:30 Mar P -0.40% -1.00% -0.70% -0.60%  
                   
  04/28 S&P CoreLogic CS 20-City MoM SA 06:00 Feb 0.35% 0.45% 0.30% 0.35%  
                   
  04/28 S&P CoreLogic CS 20-City YoY NSA 06:00 Feb 3.19% 3.47% 3.08% 3.12%  
                   
  04/28 Richmond Fed Manufact. Index 07:00 Apr -41 -53 2 -  
                   
  04/29 MBA Mortgage Applications 04:00 24 Apr - -3.30% -0.30% -  
                   
  04/29 GDP Annualized QoQ 05:30 1Q A -4.00% -4.80% 2.10% -  
                   
  04/29 Personal Consumption 05:30 1Q A -3.60% -7.60% 1.80% -  
                   
  04/29 GDP Price Index 05:30 1Q A 1.00% 1.30% 1.30% -  
                   
  04/29 Core PCE QoQ 05:30 1Q A 1.70% 1.80% 1.30% -  
                   
  04/29 FOMC Rate Decision (Upper Bound) 11:00 29 Apr 0.25% 0.25% 0.25% -  
                   
  04/29 FOMC Rate Decision (Lower Bound) 11:00 29 Apr 0.00% 0.00% 0.00% -  
                   
  04/30 Initial Jobless Claims 05:30 25 Apr 3500k 3839k 4427k 4442k  
                   
  04/30 Continuing Claims 05:30 18 Apr 19476k 17992k 15976k 15818k  
                   
  04/30 PCE Core Deflator MoM 05:30 Mar -0.10% -0.10% 0.20% -  
                   
  04/30 Personal Income 05:30 Mar -1.70% -2.00% 0.60% -  
                   
  04/30 Personal Spending 05:30 Mar -5.10% -7.50% 0.20% -  
                   
  04/30 PCE Deflator MoM 05:30 Mar -0.30% -0.30% 0.10% -  
                   
  04/30 PCE Deflator YoY 05:30 Mar 1.30% 1.30% 1.80% -  
                   
  05/01 Markit US Manufacturing PMI 06:45 Apr F 36.70 - 36.90 -
                   
 
 
 
 
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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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