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Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-17.5 (-06)  
 
  FN 2.5% Coupon   103-23.5 (+01.5)  
 
  Support   2.148%  
 
  Resistance   0.599%  
 
 
 
 
  Monday, June 1, 2020
 
 

Treasury Yields Climb as Stocks Fluctuate with Economy Reopening Amid Protests

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 0.6836, 3.10 bps increased from prior closing of 0.6526.

US stocks started this week flat as investors digested further tension with China. Treasuries edged lower and the dollar slipped. Chinese government officials told its major state-run agricultural companies to pause purchases of some American farm goods and it turned the tables using the unrest on US streets. However, most investors looked past the weekend of violent protests over the killing of an unarmed black man by a Minneapolis police officer across major US cities as many saw disconnect between Wall Street and Main Street. Another news that drove the market was disappointing trial results from Pfizer for a breast cancer drug which dampened market sentiment. Elsewhere, WTI crude edged lower, trading slightly below $35 a barrel this morning. In the economic calendar, Markit US Manufacturing PMI came in slightly below consensus of 40.00 at 39.80. Construction Spending in April fell to -2.90% from a downwardly revised prior of 0.00% but came in above consensus of -7.00%. Lastly, ISM Manufacturing in May improved to 43.10 from 41.50 prior vs. 43.80 consensus.

The curve has bear-steepened with UST 10-Year yield up 3.10 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/01 Construction Spending MoM 07:00 Apr -7.00% -2.90% 0.90% 0.00%  
                   
  06/01 ISM Manufacturing 07:00 May 43.80 43.10 41.50 -  
                   
  06/01 ISM Prices Paid 07:00 May 40.00 40.80 35.30 -  
                   
  06/03 MBA Mortgage Applications 04:00 29 May - - 2.70% -  
                   
  06/03 ADP Employment Change 05:15 May -9500K - -20236K -  
                   
  06/03 Markit US Services PMI 06:45 May F 37.30 - 36.90 -  
                   
  06/03 Markit US Composite PMI 06:45 May F - - 36.40 -  
                   
  06/03 Factory Orders 07:00 Apr -14.40% - -10.30% -10.40%  
                   
  06/03 Durable Goods Orders 07:00 Apr F -17.20% - -17.20% -  
                   
  06/03 Durables Ex Transportation 07:00 Apr F -7.40% - -7.40% -  
                   
  06/04 Trade Balance 05:30 Apr -$49.20b - -$44.40b -  
                   
  06/04 Initial Jobless Claims 05:30 30 May 1800K - 2123K -  
                   
  06/04 Continuing Claims 05:30 23 May 20000K - 21052K -  
                   
  06/04 Bloomberg Consumer Comfort 06:45 31 May - - 35.50 -  
                   
  06/05 Change in Nonfarm Payrolls 05:30 May -8000K - -20537K -  
                   
  06/05 Average Hourly Earnings MoM 05:30 May 1.00% - 4.70% -  
                   
  06/05 Average Hourly Earnings YoY 05:30 May 8.50% - 7.90% -
                   
 
 
 
 
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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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