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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-17 (-02)  
 
  FN 3.5% Coupon   102-24 (-02.5)  
 
  Support   2.345%  
 
  Resistance   2.268%  
 
 
 
 
Wednesday, May 3, 2017
 
 
Treasuries are slightly lower across the curve this morning ahead of the FOMC Rate Decision. The UST 10-Year yield is currently at 2.286% after closing at 2.281% prior.

Yesterday the market rallied on a much weaker than expected gain in auto sales in April. This morning we received the MBA Mortgage Applications for the week ending in April 28th which slipped -0.10% after rising 2.70% the week prior. Purchase activities rose 4.20% after falling 1.00% prior, while refinance applications fell 4.70% after rising 7.20% prior. The April ADP employment rose 177k after a downwardly revised 255k in March, showing a slowdown in private-sector hiring. The April Markit US Services PMI came in above expectations at 53.10 versus 52.50 consensus, while the Markit US Composite PMI came read at 53.20 versus 52.70 prior. Lastly, the ISM Non-Manufacturing Composite came in above expectations at 57.50 versus 55.80 consensus.

Later today, the FOMC Rate Decision will be released at 11:00 AM (PT). Investors do not anticipate a rate hike, and will be more attentive on how the Committee describes the current economic conditions to support the June rate hike expectations.

The curve has bear-flattened with the UST 10-Year up 0.5 bp from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/01 Personal Income 05:30 Mar 0.30% 0.20% 0.40% 0.30%  
                   
  05/01 Personal Spending 05:30 Mar 0.20% 0.00% 0.10% 0.00%  
                   
  05/01 PCE Deflator MoM 05:30 Mar -0.20% -0.20% 0.10% -  
                   
  05/01 PCE Deflator YoY 05:30 Mar 1.90% 1.80% 2.10% -  
                   
  05/01 PCE Core MoM 05:30 Mar -0.10% -0.10% 0.20% -  
                   
  05/01 PCE Core YoY 05:30 Mar 1.60% 1.60% 1.80% -  
                   
  05/01 Markit US Manufacturing PMI 06:45 Apr F 52.80 52.80 52.80 -  
                   
  05/01 ISM Manufacturing 07:00 Apr 56.50 54.80 57.20 -  
                   
  05/01 Construction Spending MoM 07:00 Mar 0.40% -0.20% 0.80% 1.80%  
                   
  05/02 No Data - - - - - -  
                   
  05/03 MBA Mortgage Applications 04:00 28 Apr - -0.10% 2.70% -  
                   
  05/03 ADP Employment Change 05:15 Apr 175k 177k 263k 255k  
                   
  05/03 Markit US Services PMI 06:45 Apr F 52.50 53.10 52.50 -  
                   
  05/03 Markit US Composite PMI 06:45 Apr F - 53.20 52.70 -  
                   
  05/03 FOMC Rate Decision (Upper Bound) 11:00 3 May 1.00% - 1.00% -  
                   
  05/03 FOMC Rate Decision (Lower Bound) 11:00 3 May 0.75% - 0.75% -  
                   
  05/04 Challenger Job Cuts YoY 04:30 Apr - - -2.00% -  
                   
  05/04 Nonfarm Productivity 05:30 1Q P -0.10% - 1.30% -  
                   
  05/04 Initial Jobless Claims 05:30 29 Apr 248k - 257k -  
                   
  05/04 Continuing Claims 05:30 22 Apr 1990k - 1988k -  
                   
  05/04 Bloomberg Consumer Comfort 06:45 30 Apr - - 50.80 -  
                   
  05/04 Factory Orders 07:00 Mar 0.40% - 1.00% -  
                   
  05/04 Durable Goods Orders 07:00 Mar F 0.70% - 0.70% -  
                   
  05/04 Durables Ex Transportation 07:00 Mar F - - -0.20% -  
                   
  05/05 Change in Nonfarm Payrolls 05:30 Apr 193k - 98k -  
                   
  05/05 Unemployment Rate 05:30 Apr 4.60% - 4.50% -  
                   
  05/05 Average Hourly Earnings MoM 05:30 Apr 0.30% - 0.20% -  
                   
  05/05 Average Hourly Earnings YoY 05:30 Apr 2.70% - 2.70% -  
                   
  05/05 Underemployment Rate 05:30 Apr - - 8.90% -  
                   
 
 
 
 
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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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