Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-23.5 (+11)  
 
  FN 3.5% Coupon   98-22.5 (+06)  
 
  Support   3.111%  
 
  Resistance   2.772%  
 
 
 
 
Wednesday, May 23, 2018
 
 
Treasuries are higher across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 3.026% after closing at 3.061% prior.

Treasuries rallied overnight and into the open as investors fled to safe-haven assets triggered by geopolitical concerns from Turkey to North Korea. With a combination of a widening current-account deficit and its central bank’s unwillingness to act, lira suffered its biggest loss in nearly a decade and rattled investors with concerns over Turkey’s financial stability. Moreover, President Trump expressed some pessimism regarding the June 12 summit with North Korea, stating that there’s a very substantial chance that the meeting will not take place.

This morning we received the MBA Mortgage Applications for the week ended May 18 which fell 2.60% in activities after dropping 2.70% prior. Purchase applications slowed 2.00% after falling 2.10% prior, while refinancing activities dropped 3.70% after falling 3.80% prior. We also received the May Markit US Manufacturing PMI which came in slightly above expectations at 56.60 versus 56.50 per consensus; Markit US Services PMI and Composite PMI both came in at 55.70. Also on the calendar, the April New Home Sales data reported a drop of 10k to 662k from a downwardly revised 672k prior. New Home Sales fell 1.50% month-over-month from a downwardly revised 2.00% increase in March. Lastly, the FOMC Minutes from the Fed’s May 2 meeting will be released later today at 11:00 AM (PT).

The curve has bull-flattened with the UST 10-Year yield down 3.5 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  05/21 Chicago Fed Nat Activity Index 05:30 Apr 0.30 0.34 0.10 0.32  
                   
  05/22 Richmond Fed Manufact. Index 07:00 May 10.00 16.00 -3.00 -  
                   
  05/23 MBA Mortgage Applications 04:00 18 May - -2.60% -2.70% -  
                   
  05/23 Markit US Manufacturing PMI 06:45 May P 56.50 56.60 56.50 -  
                   
  05/23 Markit US Services PMI 06:45 May P 55.00 55.70 54.60 -  
                   
  05/23 Markit US Composite PMI 06:45 May P - 55.70 54.90 -  
                   
  05/23 New Home Sales 07:00 Apr 680k 662k 694k 672k  
                   
  05/23 New Home Sales MoM 07:00 Apr -2.10% -1.50% 4.00% 2.00%  
                   
  05/23 FOMC Meeting Minutes 11:00 2 May - - - -  
                   
  05/24 Initial Jobless Claims 05:30 19 May 220K - 222K -  
                   
  05/24 Continuing Claims 05:30 12 May 1746k - 1707k -  
                   
  05/24 FHFA House Price Index MoM 06:00 Mar 0.60% - 0.60% -  
                   
  05/24 Bloomberg Consumer Comfort 06:45 20 May - - 54.60 -  
                   
  05/24 Existing Home Sales 07:00 Apr 5.55m - 5.60m -  
                   
  05/24 Existing Home Sales MoM 07:00 Apr -0.90% - 1.10% -  
                   
  05/24 Kansas City Fed Manf. Activity 08:00 May 20.00 - 26.00 -  
                   
  05/25 Durable Goods Orders 05:30 Apr P -1.30% - 2.60% -  
                   
  05/25 Durables Ex Transportation 05:30 Apr P 0.50% - 0.10% -  
                   
  05/25 U. of Mich. Sentiment 07:00 May F 98.80 - 98.80 -  
                   
 
 
 
 
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