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Market Commentary



 
Today's Coupons
 
  10-Year Notes   98-16.5 (+13)  
 
  FN 2.5% Coupon   103-21 (+02.5)  
 
  Support   2.148%  
 
  Resistance   0.599%  
 
 
 
 
  Wednesday, June 10, 2020
 
 

Treasury Yields Decline Further ahead of FOMC Policy Decision

 
 
Market opened today’s session with treasuries rallying across all maturities. 10-year Treasury yield is at 0.7741, 5.12 bps decreased from prior closing of 0.8253.

Stocks extended losses this morning as investors awaited an update from the Fed on their willingness to provide further stimulus for the economy. Despite the two-day losses, US equities are still up more than 40% from its March lows from the Fed’s asset purchases and unprecedented stimulus measures. The FOMC meeting will conclude today and they are scheduled to announce their policy decision at 11:00 AM (PT). Many predict that they will maintain the interest rates in a 0 0.25% target range and last week’s surprising payroll numbers are unlikely to have a major effect on their outlook yet. Fed Chair Powell will hold a video press conference at 11:30 AM (PT). In the economic calendar, MBA mortgage applications index rose 9.30% after falling 3.90% in prior week. Both purchases and refinances increased 5.30% and 11.40% after rising 5.30% and falling 8.60% in prior week, respectively. CPI MoM in May increased to -0.10% from prior reading of -0.80%, but YoY reading was still down to 0.10% from 0.30% prior. Later today, Monthly Budget Statement in May will also be released at 11:00 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 5.12 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/08 No Data - - - - - -  
                   
  06/09 NFIB Small Business Optimism 03:00 May 92.50 94.40 90.90 -  
                   
  06/09 JOLTS Job Openings 07:00 Apr 5750 5046 6191 6011  
                   
  06/10 MBA Mortgage Applications 04:00 5 Jun - 9.30% -3.90% -  
                   
  06/10 CPI MoM 05:30 May 0.00% -0.10% -0.80% -  
                   
  06/10 CPI YoY 05:30 May 0.30% 0.10% 0.30% -  
                   
  06/10 CPI Index NSA 05:30 May 256.823 256.394 256.389 -  
                   
  06/10 CPI Core Index SA 05:30 May 265.601 265.441 265.601 -  
                   
  06/10 Real Avg Weekly Earnings YoY 05:30 May - 6.50% 7.50% 7.60%  
                   
  06/10 Monthly Budget Statement 11:00 May -$504.0b - -$207.8b -  
                   
  06/11 PPI Final Demand MoM 05:30 May 0.10% - -1.30% -  
                   
  06/11 PPI Final Demand YoY 05:30 May -1.20% - -1.20% -  
                   
  06/11 Initial Jobless Claims 05:30 6 Jun 1550k - 1877k -  
                   
  06/11 Continuing Claims 05:30 30 May 20000k - 21487k -  
                   
  06/11 Bloomberg Consumer Comfort 06:45 7 Jun - - 37.00 -  
                   
  06/12 Import Price Index MoM 05:30 May -0.30% - -0.50% -  
                   
  06/12 Import Price Index YoY 05:30 May -6.30% - -6.80% -  
                   
  06/12 Export Price Index MoM 05:30 May 0.70% - -3.30% -  
                   
  06/12 Export Price Index YoY 05:30 May - - -7.00% -  
                   
  06/12 U. of Mich. Sentiment 07:00 Jun P 75.00 - 72.30 -
                   
 
 
 
 
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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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