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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-08.5 (-09.5)  
 
  FN 3.5% Coupon   99-02 (-05)  
 
  Support   3.111%  
 
  Resistance   2.759%  
 
 
 
 
Wednesday, June 06, 2018
 
 
Treasuries are moderately lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.956% after closing at 2.929% prior. 
Treasuries fell overnight and into the open as this week’s risk-on mode resumed while investors digest the possibility of the European Central Bank’s decision to end its bond-buying program. U.S. Stocks extended gains while the dollar weakened with Treasuries. This morning we received the Trade Balance for April reporting that the trade deficit narrowed month-over-month to $46.20 Billion from a downwardly revised deficit of $47.20 Billion in March; the March trade deficit was initially released at $49.00 Billion. The trade deficit for April came in much lower than expected as consensus called for $49.00 Billion in deficit.

MBA Mortgage Applications rose for the first time since April 13, increasing 4.10% in activities for the week ended June 1. Purchase applications rose 4.20% after falling 1.90% the week prior, while refinancing applications increased 3.80% after dropping 4.70% the week prior. Lastly on today’s calendar, we received the 1Q Nonfarm Productivity which saw a downward revision to 0.40% from 0.70% prior. Unit Labor Costs for 1Q was upwardly revised to 2.90% from 2.70% prior.

The curve has bear-steepened with the UST 10-Year yield up 2.7 bps from prior closing.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/04 Factory Orders 07:00 Apr -0.50% -0.80% 1.60% 1.70%  
                   
  06/04 Durable Goods Orders 07:00 Apr F - -1.60% -1.70% -  
                   
  06/04 Durables Ex Transportation 07:00 Apr F - 0.90% 0.90% -  
                   
  06/05 Markit US Services PMI 06:45 May F 55.70 56.80 55.70 -  
                   
  06/05 Markit US Composite PMI 06:45 May F - 56.60 55.70 -  
                   
  06/05 JOLTS Job Openings 07:00 Apr 6350 6698 6550 6633  
                   
  06/06 MBA Mortgage Applications 04:00 1 Jun - 4.10% -2.90% -  
                   
  06/06 Nonfarm Productivity 05:30 1Q F 0.60% 0.40% 0.70% -  
                   
  06/06 Unit Labor Costs 05:30 1Q F 2.80% 2.90% 2.70% -  
                   
  06/06 Trade Balance 05:30 Apr -$49.00b -$46.20b -$49.00b -$47.20b  
                   
  06/07 Initial Jobless Claims 05:30 2 Jun 221k - 221k -  
                   
  06/07 Continuing Claims 05:30 26 May 1738k - 1726k -  
                   
  06/07 Bloomberg Consumer Comfort 06:45 3 Jun - - 55.20 -  
                   
  06/08 Wholesale Trade Sales MoM 07:00 Apr - - 0.30% -  
                   
  06/08  Wholesale Inventories MoM 07:00 Apr F 0.00% - 0.00% -  
                   
 
 
 
 
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  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  
 
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