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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-08.5 (-01.5)  
 
  FN 3.5% Coupon   98-14 (00)  
 
  Support   3.072%  
 
  Resistance   2.761%  
 
 
 
 
Wednesday, May 16, 2018
 
 
Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 3.070% after closing at 3.073% prior.

This morning we received the Housing Starts data for April which fell 3.70% month-over-month to 1287k unit rate following an upwardly revised 3.60% increase of 1336k unit rate in March. Single family starts rose just 0.10% in April, while multi-family starts sharply dropped 11.30% in activities. Building Permits also slowed in April reporting a 1.80% decrease month-over-month to 1352k unit rate following an upwardly revised 4.10% increase of 1377k unit rate in March. We also received the Industrial Production report for April which rose slightly higher than expected at 0.70% versus a 0.60% increase per consensus.

MBA Mortgage Applications for the week ended May 11 fell 2.70% after falling 0.40% the week prior. Purchase applications fell 2.10% after falling 0.20% the week prior, while refinancing activities dropped 3.80% after falling 0.60% the week prior. Lastly, the April Capacity Utilization rate rose 78.00% from a downwardly revised 77.60% in March; consensus called for a 78.40% increase.

The curve has bull flattened with the UST 10-Year yield down 0.3 bp from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/14 No Data - - - - - -  
                   
  05/15 Empire Manufacturing 05:30 May 15.00 20.10 15.80 -  
                   
  05/15 Retail Sales Advance MoM 05:30 Apr 0.30% 0.30% 0.60% 0.80%  
                   
  05/15 Business Inventories 07:00 Mar 0.10% 0.00% 0.60% -  
                   
  05/15 NAHB Housing Market Index 07:00 May 69.00 70.00 69.00 68.00  
                   
  05/15 Total Net TIC Flows 13:00 Mar - - $44.70b -  
                   
  05/15 Net Long-term TIC Flows 13:00 Mar - - $49.00b -  
                   
  05/16 MBA Mortgage Applications 04:00 11 May - -2.70% -0.40% -  
                   
  05/16 Housing Starts 05:30 Apr 1310k 1287k 1319k 1336k  
                   
  05/16 Housing Starts MoM 05:30 Apr -0.70% -3.70% 1.90% 3.60%  
                   
  05/16 Building Permits 05:30 Apr 1350k 1352k 1354k 1377k  
                   
  05/16 Building Permits MoM 05:30 Apr -2.10% -1.80% 2.50% 4.10%  
                   
  05/16 Industrial Production MoM 06:15 Apr 0.60% 0.70% 0.50% 0.70%  
                   
  05/16 Capacity Utilization 06:15 Apr 78.40% 78.00% 78.00% 77.60%  
                   
  05/17 Initial Jobless Claims 05:30 12 May 215k - 211k -  
                   
  05/17 Continuing Claims 05:30 5 May 1780k - 1790k -  
                   
  05/17 Philadelphia Fed Business Outlook 05:30 May 21.00 - 23.20 -  
                   
  05/17 Bloomberg Consumer Comfort 06:45 13 May - - 55.80 -  
                   
  05/17 Leading Index 07:00 Apr 0.40% - 0.30% -  
                   
  05/18 No Data - - - - - -  
                   
 
 
 
 
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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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