Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-23 (-08.5)  
 
  FN 3.5% Coupon   101-08.5 (-03.5)  
 
  Support   3.237%  
 
  Resistance   2.356%  
 
 
 
 
Thursday, May 16, 2019
 
 
Treasury Yields Climb after Strong Corporate Earnings
 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year treasury yield is at 2.4104, 3.72 bps increased from prior closing of 2.3732.

US equity index futures rose as Cisco and Walmart outperformed from better-than-expected quarterly earnings and revenue guidance. All three main benchmarks had fallen earlier in the wake of President Trump’s move to curb Huawei Technologies’ access to the US market. On Wednesday, President Trump signed an executive order that gives the government authority to block transactions that “poses an unacceptable risk to the national security of the US”. This move will likely be followed by a ban on US companies doing business with Huawei. Amid growing concerns over global economic weakness, traders have increased bets on the Fed cutting the rates later this year. Elsewhere, WTI crude climbed above $62 a barrel, reaching the highest level in more than two weeks.

Housing Starts in April rose to 1235k from an upwardly revised prior of 1168k vs. 1209k consensus, and Building Permits in April also increased to 1296k above consensus of 1289k, following an upwardly revised reading of 1288k in March as 80-bps decline in mortgage rates since November last year is fueling demand for housing. Philadelphia Fed Business Outlook sharply climbed to 16.60 from 8.50 prior vs. 9.00 consensus. Initial Jobless Claims inched lower to 212k from 228k prior and Continuing Claims also fell to 1660k from revised prior of 1688k. Lastly, Bloomberg Consumer Comfort slightly moved higher to 59.90 from 59.80 prior. Later today, the US Treasury is scheduled to auction off $50 billion of 4-week bills and $35 billion of 8-week bills at 8:30 AM (PT).

The curve has bear-flattened with UST 10-Year yield up 3.72 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/13 No Data - - - - - -  
                   
  05/14 NFIB Small Business Optimism 02:03 Apr 102.00 103.50 101.80 -  
                   
  05/14 Import Price Index MoM 05:30 Apr 0.70% 0.20% 0.60% -  
                   
  05/14 Import Price Index YoY 05:30 Apr 0.30% -0.20% 0.00% 0.10%  
                   
  05/14 Export Price Index MoM 05:30 Apr 0.60% 0.20% 0.70% 0.60%  
                   
  05/14 Export Price Index YoY 05:30 Apr - 0.30% 0.60% -  
                   
  05/15 MBA Mortgage Applications 04:00 10 May - -0.60% 2.70% -  
                   
  05/15 Retail Sales Advance MoM 05:30 Apr 0.20% -0.20% 1.60% 1.70%  
                   
  05/15 Empire Manufacturing 05:30 May 8.00 17.80 10.10 -  
                   
  05/15 Industrial Production MoM 06:15 Apr 0.00% -0.50% -0.10% 0.20%  
                   
  05/15 Capacity Utilization 06:15 Apr 78.70% 77.90% 78.80% 78.50%  
                   
  05/15 NAHB Housing Market Index 07:00 May 64.00 66.00 63.00 -  
                   
  05/15 Business Inventories 07:00 Mar 0.00% 0.00% 0.30% -  
                   
  05/16 Housing Starts 05:30 Apr 1209k 1235k 1139k 1168k  
                   
  05/16 Housing Starts MoM 05:30 Apr 6.20% 5.70% -0.30% 1.70%  
                   
  05/16 Building Permits 05:30 Apr 1289k 1296k 1269k 1288k  
                   
  05/16 Building Permits MoM 05:30 Apr 0.10% 0.60% -1.70% -0.20%  
                   
  05/16 Philadelphia Fed Business Outlook 05:30 May 9.00 16.60 8.50 -  
                   
  05/16 Initial Jobless Claims 05:30 11 May 220k 212k 228k -  
                   
  05/16 Continuing Claims 05:30 4 May 1673k 1660k 1684k 1688k  
                   
  05/16 Bloomberg Consumer Comfort 06:45 12 May - 59.90 59.80 -  
                   
  05/17 Leading Index 07:00 Apr 0.20% - 0.40% -  
                   
  05/17 U. of MichSentiment 07:00 May P 97.10 - 97.20 -
                   
 
 
 
 
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
 
 
   
 
  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  
 
©2019 Sun West Mortgage Company, Inc. All Rights Reserved