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Market Commentary


 
Today's Coupons
 
  10-Year Notes   102-03 (+20.5)  
 
  FN 3.5% Coupon   103-10 (+09.5)  
 
  Support   2.225%  
 
  Resistance   2.127%  
 
 
 
 
Wednesday, June 14, 2017
 
 
Treasuries rallied across the curve this morning ahead of the anticipated Fed rate hike decision. The UST 10-Year yield is currently at 2.132% after closing at 2.212% prior.

This morning we received weaker-than-expected data that pushed yields lower from previous close. The May CPI inflation report dropped 0.10% MoM, and showed just a 0.10% increase in core prices where Food and Energy are excluded. The headline inflation is now down to 1.90% YoY from 2.20% prior, and core prices are down to 1.70% YoY from 1.90% prior. Moreover, the May Retail Sales Advance MoM fell 0.30% after rising 0.40% in April, and Retail Sales excluding Auto dropped 0.30% after an upwardly revised rise of 0.40% in April. MBA Mortgage Applications for the week ending on June 9th rose 2.80% after rising 7.10% the week prior. Purchase applications fell 2.80% after a 10.00% increase prior, and refinancing activities rose 9.20% after a 3.40% rise prior.

The June FOMC meeting concludes today at 11:00 AM (PT), and investors expect the target range for the federal funds rate to hike up to 1.00-1.25%. The focus will be on the statement released by the Feds on whether another rate hike would still be appropriate later this year.

The curve has bull-flattened with the UST 10-Year down 8.0 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/12 Monthly Budget Statement 11:00 May -$87.00b -$88.40b -$52.50b -  
                   
  06/13 NFIB Small Business Optimism 03:00 May 104.50 104.50 104.50 -  
                   
  06/13 PPI Final Demand MoM 05:30 May 0.00% 0.00% 0.50% -  
                   
  06/13 PPI Final Demand YoY 05:30 May 2.30% 2.40% 2.50% -  
                   
  06/14 MBA Mortgage Applications 04:00 9 Jun - 2.80% 7.10% -  
                   
  06/14 CPI MoM 05:30 May 0.00% -0.10% 0.20% -  
                   
  06/14 CPI YoY 05:30 May 2.00% 1.90% 2.20% -  
                   
  06/14 Retail Sales Advance MoM 05:30 May 0.00% -0.30% 0.40% -  
                   
  06/14 Business Inventories 07:00 Apr -0.20% -0.20% 0.20% -  
                   
  06/14 FOMC Rate Decision (Upper Bound) 11:00 14 Jun 1.25% - 1.00% -  
                   
  06/14 FOMC Rate Decision (Lower Bound) 11:00 14 Jun 1.00% - 0.75% -  
                   
  06/15 Import Price Index MoM 05:30 May -0.10% - 0.50% -  
                   
  06/15 Empire Manufacturing 05:30 Jun 5.00 - -1.00 -  
                   
  06/15 Import Price Index YoY 05:30 May 2.50% - 4.10% -  
                   
  06/15 Initial Jobless Claims 05:30 10 Jun - - 245k -  
                   
  06/15 Continuing Claims 05:30 3 Jun - - 1917k -  
                   
  06/15 Philadelphia Fed Business Outlook 05:30 Jun 25.00 - 38.80 -  
                   
  06/15 Industrial Production MoM 06:15 May 0.10% - 1.00% -  
                   
  06/15 Capacity Utilization 06:15 May 76.80% - 76.70% -  
                   
  06/15 Bloomberg Consumer Comfort 06:45 11 Jun - - 49.90 -  
                   
  06/15 NAHB Housing Market Index 07:00 Jun 70.00 - 70.00 -  
                   
  06/15 Total Net TIC Flows 13:00 Apr - - -$0.70b -  
                   
  06/16 Housing Starts 05:30 May 1220k - 1172k -  
                   
  06/16 Housing Starts MoM 05:30 May 4.10% - -2.60% -  
                   
  06/16 Building Permits 05:30 May 1250k - 1229k 1228k  
                   
  06/16 Building Permits MoM 05:30 May 1.80% - -2.50% -2.50%  
                   
  06/16 Labor Market Conditions Index Change 07:00 May 3.00 - 3.50 -  
                   
  06/16 U. of Mich. Sentiment 07:00 Jun P 97.10 - 97.10 -  
                   
 
 
 
 
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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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