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Market Commentary


 
Today's Coupons
 
  10-Year Notes   102-06 (+04.5)  
 
  FN 3.5% Coupon   101-30 (+03)  
 
  Support   3.237%  
 
  Resistance   2.062%  
 
 
 
 
Wednesday, June 12, 2019
 
 
Treasury Yields Lower as Trade Concerns Linger
 
 
Market opened today’s session with treasuries slightly advancing across all maturities. 10-Year Treasury yield is at 2.1309, 1.22 bps decreased from prior closing of 2.1431.

The revival in risk appetite may have overshot. Stocks slipped globally after President Trump said on Tuesday that he was personally holding up a trade deal with China and would not complete the agreement unless Beijing agreed on as many as five “major points”. In Hong Kong, a clash between protesters and police over extradition bill where police used tear gas and rubber bullets to control the situation spooked the market participants, compounding the already-negative investor sentiment. Treasuries gained early in the morning and steadied after inflation data came in slower than forecasts. Elsewhere, WTI crude slumped below $53 a barrel this morning after an industry report showed that US crude stockpiles expanded.

MBA Mortgage Applications Index jumped 26.80% after rising 1.50% in prior week due to recent gains in Treasuries. Both purchases and refinances increased 10.00% and 46.50% after falling 2.40% and rising 6.40% in prior week, respectively. The May CPI came in line with consensus of 0.10%, following 0.30% in April. The core remained unchanged from prior reading of 0.10% vs. 0.20% consensus, and the YoY change decreased to 1.80% from 2.00% prior vs. 1.90% consensus, adding to growing optimism over the Fed’s rate cut. Later today, the US Treasury is scheduled to auction off $24 billion of 10-Year notes at 10:00 AM (PT), and Monthly Budget Statement will be released at 11:00 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 1.22 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/10 JOLTS Job Openings 07:00 Apr 7496 7449 7488 7474  
                   
  06/11 NFIB Small Business Optimism 03:00 May 102.00 105.00 103.50 -  
                   
  06/11 PPI Final Demand MoM 05:30 May 0.10% 0.10% 0.20% -  
                   
  06/11 PPI Final Demand YoY 05:30 May 2.00% 1.80% 2.20% -  
                   
  06/12 MBA Mortgage Applications 04:00 7 Jun - 26.80% 1.50% -  
                   
  06/12 CPI MoM 05:30 May 0.10% 0.10% 0.30% -  
                   
  06/12 CPI YoY 05:30 May 1.90% 1.80% 2.00% -  
                   
  06/12 Monthly Budget Statement 11:00 May -$202.50b - -$146.80b -  
                   
  06/13 Import Price Index MoM 05:30 May -0.20% - 0.20% -  
                   
  06/13 Import Price Index YoY 05:30 May -1.20% - -0.20% -  
                   
  06/13 Export Price Index MoM 05:30 May -0.20% - 0.20% -  
                   
  06/13 Export Price Index YoY 05:30 May - - 0.30% -  
                   
  06/13 Initial Jobless Claims 05:30 8 Jun 215k - 218k -  
                   
  06/13 Continuing Claims 05:30 1 Jun 1660k - 1682k -  
                   
  06/13 Bloomberg Consumer Comfort 06:45 9 Jun - - 61.70 -  
                   
  06/14 Retail Sales Advance MoM 05:30 May 0.60% - -0.20% -  
                   
  06/14 Industrial Production MoM 06:15 May 0.20% - -0.50% -  
                   
  06/14 Capacity Utilization 06:15 May 78.00% - 77.90% -  
                   
  06/14 U. of Mich. Sentiment 07:00 Jun P 98.00 - 100.00 -  
                   
  06/14 Business Inventories 07:00 Apr 0.50% - 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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