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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-06.5 (+01.5)  
 
  FN 3.5% Coupon   99-03.5 (+0.5)  
 
  Support   3.026%  
 
  Resistance   2.719%  
 
 
 
 
Wednesday, May 02, 2018
 
 
Treasuries are slightly lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.971% after closing at 2.965% prior.

This morning we received the MBA Mortgage Applications report for the week ended April 27th which fell 2.50% following a drop of 0.20% the week prior. Purchase applications dipped 1.60% after being unchanged the week prior, while refinancing activities fell 3.50% after falling 0.30% the week prior. We also received the ADP Employment Change print for April which came in above expectations at 204k versus 198k per consensus; the March ADP Employment Change was downwardly revised to 228k from 241k. This marks the sixth consecutive month that ADP reported over 200k private payrolls added.

Treasury announced a $73 Billion refunding package early this morning, which is $7 Billion larger than the package announced in the prior quarter. The refunding package consists of $31 Billion 3-Year note, $25 Billion 10-Year note, and a $17 Billion 30-Year bond. Investors continue to digest the newly announced refunding plan, and will also focus on the Fed’s policy announcement scheduled at 11:00 AM (PT) at the conclusion of the two-day FOMC meeting.

The curve has bear-steepened with the UST 10-Year yield up 0.6 bp from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/30 Personal Income 05:30 Mar 0.40% 0.30% 0.40% 0.30%  
                   
  04/30 Personal Spending 05:30 Mar 0.40% 0.40% 0.20% 0.00%  
                   
  04/30 PCE Deflator MoM 05:30 Mar 0.00% 0.00% 0.20% -  
                   
  04/30 PCE Deflator YoY 05:30 Mar 2.00% 2.00% 1.80% 1.70%  
                   
  04/30 PCE Core MoM 05:30 Mar 0.20% 0.20% 0.20% -  
                   
  04/30 PCE Core YoY 05:30 Mar 1.90% 1.90% 1.60% -  
                   
  04/30 Pending Home Sales MoM 07:00 Mar 0.70% 0.40% 3.10% 2.80%  
                   
  04/30 Pending Home Sales NSA YoY 07:00 Mar - -4.40% -4.40% -4.70%  
                   
  04/30 Dallas Fed Manf. Activity 07:30 Apr 23.00 21.80 21.40 22.80  
                   
  05/01 Markit US Manufacturing PMI 06:45 Apr F 56.50 56.50 56.50 -  
                   
  05/01 Construction Spending MoM 07:00 Mar 0.50% -1.70% 0.10% 1.00%  
                   
  05/01 ISM Manufacturing 07:00 Apr 58.50 57.30 59.30 -  
                   
  05/01 ISM Prices Paid 07:00 Apr 78.50 79.30 78.10 -  
                   
  05/02 MBA Mortgage Applications 04:00 27 Apr - -2.50% -0.20% -  
                   
  05/02 ADP Employment Change 05:15 Apr 198k 204k 241k 228k  
                   
  05/02 FOMC Rate Decision (Upper Bound) 11:00 2 May 1.75% - 1.75% -  
                   
  05/02 FOMC Rate Decision (Lower Bound) 11:00 2 May 1.50% - 1.50% -  
                   
  05/03 Challenger Job Cuts YoY 04:30 Apr - - 39.40% -  
                   
  05/03 Nonfarm Productivity 05:30 1Q P 0.90% - 0.00% -  
                   
  05/03 Initial Jobless Claims 05:30 28 Apr 225k - 209k -  
                   
  05/03 Continuing Claims 05:30 21 Apr 1835k - 1837k -  
                   
  05/03 Unit Labor Costs 05:30 1Q P 3.00% - 2.50% -  
                   
  05/03 Trade Balance 05:30 Mar -$50.00b - -$57.60b -  
                   
  05/03 Bloomberg Consumer Comfort 06:45 29 Apr - - 57.50 -  
                   
  05/03 Markit US Services PMI 06:45 Apr F 54.50 - 54.40 -  
                   
  05/03 Markit US Composite PMI 06:45 Apr F - - 54.80 -  
                   
  05/03 Durable Goods Orders 07:00 Mar F - - 2.60% -  
                   
  05/03 Durables Ex Transportation 07:00 Mar F - - 0.00% -  
                   
  05/03 Factory Orders 07:00 Mar 1.40% - 1.20% -  
                   
  05/04 Change in Nonfarm Payrolls 05:30 Apr 191k - 103k -  
                   
  05/04 Unemployment Rate 05:30 Apr 4.00% - 4.10% -  
                   
  05/04 Average Hourly Earnings MoM 05:30 Apr 0.20% - 0.30% -  
                   
  05/04 Average Hourly Earnings YoY 05:30 Apr 2.70% - 2.70% -  
                   
  05/04 Labor Force Participation Rate 05:30 Apr 62.90% - 62.90% -  
                   
 
 
 
 
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  This information is provided solely for informational use and is not intended as trading or investment advice 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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