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Market Commentary



 
Today's Coupons
 
  10-Year Notes   98-21.5 (-23.5)  
 
  FN 2.5% Coupon   103-17.5 (-07)  
 
  Support   2.148%  
 
  Resistance   0.599%  
 
 
 
 
  Wednesday, June 3, 2020
 
 

Treasury Yields Climb as Stocks Extend Gain

 
 
Market opened today’s session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 0.7623, 7.71 bps increased from prior closing of 0.6852.

MBA mortgage applications index fell 3.90% after rising 2.70% in prior week. Purchases increased 5.30% and refinances declined 8.60% after rising 8.60% and falling 0.20% in prior week, respectively. Notably, purchases surged 62% since April 10th, marking the biggest seven-week increase since 1994 which indicates that many Americans have been scouting for new properties to find a bargain with mortgage rates at record lows during the quarantine. ADP Employment Change in May also lifted market sentiment as the report showed private payroll fell by 2.76 million, far less than 9 million estimate. US stocks extended a global rally as investors weighed optimism over economic recovery from the pandemic. Banks and airline shares led the rally in equities this morning. Treasuries, gold, and the dollar fell while WTI crude edged higher, hovering around $37 a barrel after the leaders of OPEC+ gave fellow members an ultimatum to stop cheating on their output quotas. In the remainder of the economic calendar, both Markit US Services PMI and Composite PMI improved to 37.50 and 37.00 from prior readings of 36.90 and 36.40, respectively. However, Factory Orders in April fell to -13.00 from revised prior of -11.00% and Durable Goods Orders also fell to -17.70% from -17.20% prior.

The curve has bear-steepened with UST 10-Year yield up 7.71 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 - -3.90% 2.70% -  
                   
  06/03 ADP Employment Change 05:15 May -9000K -2760k -20236K -19557k  
                   
  06/03 Markit US Services PMI 06:45 May F 37.30 37.50 36.90 -  
                   
  06/03 Markit US Composite PMI 06:45 May F - 37.00 36.40 -  
                   
  06/03 Factory Orders 07:00 Apr -13.40% -13.00% -10.30% -11.00%  
                   
  06/03 Durable Goods Orders 07:00 Apr F -17.20% -17.70% -17.20% -  
                   
  06/03 Durables Ex Transportation 07:00 Apr F -7.40% -7.70% -7.40% -  
                   
  06/04 Trade Balance 05:30 Apr -$49.20b - -$44.40b -  
                   
  06/04 Initial Jobless Claims 05:30 30 May 1843K - 2123K -  
                   
  06/04 Continuing Claims 05:30 23 May 20050K - 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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