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Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-03.5 (-08)  
 
  FN 3.5% Coupon   105-10.5 (+01)  
 
  Support   2.426%  
 
  Resistance   0.580%  
 
 
 
 
  Wednesday, May 20, 2020
 
 

Treasury Yields Edge Slightly Higher, U.S. Stocks Rise

 
 
Market opened today’s session with treasuries slightly lower across all maturities. 10-Year Treasury yield is currently at 0.709, 1.9 bps increased from prior closing of 0.690.

U.S. equity futures nudged higher on Wednesday while European stocks fluctuated between gains and losses as investors digested the outlook for global reopening plans. The rebound in U.S. stocks was aided by signs that the U.S. economy will likely continue to reopen as President Trump claimed that the U.S. is ahead of schedule with its vaccine efforts. Moreover, corporate earnings were also an influence in equities as Lowe's and Target both showed that their corporate reports bested sales and earnings estimates; the S&P 500 jumped more than 1% on the reports. Treasury yields inched higher ahead of the U.S. Treasury's revival of the 20-year bond issue, which is scheduled later today at 10:00 AM (PT). Elsewhere, crude oil added to its four-day rally as it showed gains for a fifth consecutive day.

On another light economic calendar, we received the Mortgage Applications for the week ending May 15, which fell 2.60% following an unrevised 0.30% increase the week prior. Refinance applications fell 6.3% while purchase applications rose 6.4%. Purchase applications have now risen in five consecutive weekly reports. The FOMC Meeting Minutes from the Fed's April 29th meeting will be released later today at 11:00 AM (PT).

The curve has bear-steepened with UST 10-Year yield up 1.9 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/18 NAHB Housing Market Index 07:00 May 35 37 30 -  
                   
  05/19 Housing Starts 05:30 Apr 900k 891k 1216k 1276k  
                   
  05/19 Housing Starts MoM 05:30 Apr -26.00% -30.20% -22.30% -18.60%  
                   
  05/19 Building Permits 05:30 Apr 1000k 1074k 1353k 1356k  
                   
  05/19 Building Permits MoM 05:30 Apr -25.90% -20.80% -6.80% -5.70%  
                   
  05/20 MBA Mortgage Applications 04:00 15 May - -2.60% 0.30% -  
                   
  05/21 Philadelphia Fed Business Outlook 05:30 May -40.00 - -56.60 -  
                   
  05/21 Initial Jobless Claims 05:30 16 May 2400k - 2981k -  
                   
  05/21 Continuing Claims 05:30 9 May 23500k - 22833k -  
                   
  05/21 Bloomberg Consumer Comfort 06:45 17 May - - 35.80 -  
                   
  05/21 Markit US Services PMI 06:45 May P 32.30 - 26.70 -  
                   
  05/21 Markit US Composite PMI 06:45 May P - - 27.00 -  
                   
  05/21 Existing Home Sales 07:00 Apr 4.22m - 5.27m -  
                   
  05/21 Existing Home Sales MoM 07:00 Apr -19.90% - -8.50% -  
                   
  05/21 Leading Index 07:00 Apr -5.40% - -6.70% -
                   
 
 
 
 
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  This information is provided solely for informational use and is not intended as an advice for trading or investment purposes 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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