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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-13.5 (+03.5)  
 
  FN 3.5% Coupon   101-03.5 (+03)  
 
  Support   3.237%  
 
  Resistance   2.428%  
 
 
 
 
Friday, May 10, 2019
 
 
Treasury Yields Decline Further on Additional Tariffs
 
 
Market opened today’s session with treasuries slightly inching higher across all maturities. 10-Year treasury yield is at 2.4405, 0.18 bp decreased from prior closing of 2.4423.

US stocks sold-off for a fifth day as the US followed through with its plan to increase tariffs on Chinese imports last night. With China vowing to retaliate, the Shanghai Composite Index rallied and ended the session 3.10% higher as Chinese state-backed funds bought domestic shares. President Trump tweeted this morning that there is absolutely no need to rush for a trade agreement with China and tariffs will make the US much stronger. However, the talks will still continue today in Washington between Chinese Vice Premier Liu He and top US officials. Treasuries slightly inched higher and the dollar weakened after the low inflation data. Elsewhere, WTI crude slightly edged higher but still continued to trade below $62 a barrel this morning.

The headline CPI in April declined to 0.30%, weaker than the consensus of 0.40% following 0.40% in March. The core came in below consensus of 0.20% at 0.10% as well. However, the YoY change increased to 2.00% from 1.90% prior for the headline and the core also increased to 2.10% from 2.00% prior. Later today, Monthly Budget Statement for April will be released at 11:00 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 0.18 bp.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/06 No Data - - - - - -  
                   
  05/07 JOLTS Job Openings 07:00 Mar 7350 7488 7087 7142  
                   
  05/08 MBA Mortgage Applications 04:00 3 May - 2.70% -4.30% -  
                   
  05/09 PPI Final Demand MoM 05:30 Apr 0.30% 0.20% 0.60% -  
                   
  05/09 PPI Final Demand YoY 05:30 Apr 2.30% 2.20% 2.20% -  
                   
  05/09 Trade Balance 05:30 Mar -$50.10b -50.00b -$49.40b -49.30b  
                   
  05/09 Initial Jobless Claims 05:30 4 May 220k 228k 230k -  
                   
  05/09 Continuing Claims 05:30 27 Apr 1670k 1684k 1671k -  
                   
  05/09 Bloomberg Consumer Comfort 06:45 5 May - 59.80 60.40 -  
                   
  05/09 Wholesale Inventories MoM 07:00 Mar F 0.00% -0.10% 0.00% -  
                   
  05/09 Wholesale Trade Sales MoM 07:00 Mar 0.60% 2.30% 0.30% -  
                   
  05/10 CPI MoM 05:30 Apr 0.40% 0.30% 0.40% -  
                   
  05/10 CPI YoY 05:30 Apr 2.10% 2.00% 1.90% -  
                   
  05/10 Monthly Budget Statement 11:00 Apr $160.50b - $214.30b -
                   
 
 
 
 
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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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