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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-12 (-03) 1.807%  
 
  FN 3.5% Coupon   104-25.5 (-01.5)  
 
  Support   2.050%  
 
  Resistance   1.700%  
 
 
 
 
Today's Blurb Wednesday, May 4, 2016
 
 
           MBA Mortgage Applications fell 3.40% last week following a 4.10% decline prior. Purchases slipped 0.10% vs. -2.40% prior, Refinancing fell 5.50% vs. -5.00% prior, and the average interest rate for a 30-Year Conventional Conforming loan rose 2 bps to 3.870% (3.930% a year ago). ADP disappointed expectations showing an added 156K jobs (consensus 195K) following a revised 194K increase in March. Since the data posted below expectations, this may point to a weaker than anticipated employment report on Friday. Over the past twelve months ADP has diverged from Nonfarm Payrolls by an average of 42K. The Trade Deficit narrowed in March to $40.443 Billion from a revised $46.963 Billion in February with Exports down 0.90% and Imports down 3.60%. The March goods deficit narrowed to $58.513 Billion vs. $64.532 Billion prior, and the service surplus widened to $18.07 Billion vs. $17.569 Billion prior. Markit US Services PMI rose to 52.80 vs. 52.10 prior and Markit US Composite PMI rose to 52.40 vs. 51.70 prior. Factory Orders outpaced consensus, up 1.10% in March (consensus +0.60%) vs. -1.90% prior. Durable Goods Orders rose 0.80% in March, according to the final estimate. Treasuries got an initial boost this morning following the data release and have since come back down to settle just below yesterday's close level. The curve has steepened with 2s10s up 0.2 bp to 104.4.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/02 Markit US Manufacturing PMI 06:45 Apr F 50.80 50.80 50.80 -  
                   
  05/02 ISM Manufacturing 07:00 Apr 51.40 50.80  51.80 -  
                   
  05/02 Construction Spending MoM 07:00 Mar  0.50%  0.30%  -0.50% 1.00%  
                   
  05/03 ISM New York 06:45 Apr - 57.00 50.40 -  
                   
  05/04 MBA Mortgage Applications 04:00 29 Apr -  -3.40%  -4.10% -  
                   
  05/04 ADP Employment Change 05:15 Apr 195K 156K 200K 194K  
                   
  05/04 Trade Balance 05:30 Mar -$41.20 B -$40.40 B -$47.10 B -$47.00 B  
                   
  05/04 Nonfarm Productivity 05:30 1Q P -1.30% -1.00%    -2.20% -1.70%  
                   
  05/04 Markit US Services PMI 06:45 Apr F 52.10 52.80 52.10 -  
                   
  05/04 Markit US Composite PMI 06:45 Apr F  - 52.40 51.70 -  
                   
  05/04 Factory Orders 07:00 Mar   0.60% 1.10%  -1.70% -1.90%  
                   
  05/04 Durable Goods Orders 07:00 Mar F   0.80% 0.80%    0.80% -  
                   
  05/04 Durables Ex Transportation 07:00 Mar F -0.10% -0.20%  -0.20% -  
                   
  05/05 Challenger Job Cuts YoY 04:30 Apr - -    31.70% -  
                   
  05/05 Initial Jobless Claims 05:30 30 Apr 260K  - 257K -  
                   
  05/05 Continuing Claims 05:30 23 Apr 2128K - 2130K -  
                   
  05/05 Bloomberg Consumer Comfort 06:45 1 May - - 43.40 -  
                   
  05/06 Change in Nonfarm Payrolls 05:30 Apr 200K  - 215K -  
                   
  05/06 Unemployment Rate 05:30 Apr   4.90% -   5.00% -  
                   
  05/06 Average Hourly Earnings MoM 05:30 Apr   0.30% -    0.30% -  
                   
  05/06 Average Hourly Earnings YoY 05:30 Apr   2.40% -    2.30% -  
                   
  05/06 Labor Force Participation Rate 05:30 Apr  63.00% -    63.00% -  
                   
  05/06 Underemployment Rate 05:30 Apr - -    9.80% -  
                   
 
 
 
 
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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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