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Market Commentary



 
Today's Coupons
 
  10-Year Notes   108-05 (+02)  
 
  FN 3.5% Coupon   105-21.5 (00)  
 
  Support   2.541%  
 
  Resistance   0.547%  
 
 
 
 
  Friday, May 1, 2020
 
 

Treasury Yields Steady, Stocks Decline

 
 
Market opened today’s session with treasuries relatively flat across all maturities. 10-Year Treasury yield is currently at 0.635, 0.5 bp decreased from prior closing of 0.640.

U.S. stocks weakened to kick off May as investors digested comments from Apple Inc. and Amazon.com about the negative impact of COVID-19. After posting its revenue growth of 1% in its most recent fiscal quarter, Apple declined to provide an earnings forecast for the first time in over a decade. Amazon warned of a possible second-quarter loss amid the uncertainty surrounding the impact of the coronavirus pandemic. Furthermore, President Trump also rattled markets by rekindling his trade dispute with China, speculating that China is to blame for the spread of the virus. The dollar advanced following Trump's comments. Elsewhere, West Texas oil continued to climb towards $20 a barrel for its first weekly gain in the last month as global production cuts began to take effect.

On the economic calendar, we received the final reading of April's Markit US Manufacturing PMI, which came in at 36.10 versus 36.90 prior. ISM Manufacturing came in at 41.50 following a 49.10 reading prior, while ISM Prices Paid came in at 35.30 following a 37.40 reading prior. We also received the Construction Spending data for the month of March, which showed a 0.90% incline following a downwardly revised 2.50% drop prior.

The curve has bull-steepened with UST 10-Year yield down 0.5 bp.
 
 
   
 
   
 
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 36.10 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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