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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-30 (+09.5)  
 
  FN 3.5% Coupon   99-09.5 (+05)  
 
  Support   3.111%  
 
  Resistance   2.759%  
 
 
 
 
Tuesday, June 19, 2018
 
 
Treasuries are higher across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.887% after closing at 2.918% prior.

Treasuries rallied overnight and into the open as trade tensions escalated between U.S. and China. President Trump threatened additional tariffs of 10 percent on $200 Billion in Chinese imports following the $50 Billion in tariffs he announced last Friday; China vowed to forcefully retaliate against Trump’s threats. Investors fled to safe-haven assets as the growing concerns of a trade war between the world’s two largest economies intensified. Stocks fell and equities dropped, while the dollar climbed with Treasuries.

This morning we received the Housing Starts for the month of May which rose 64k to 1350k from a downwardly revised 1286k prior. U.S. new-home construction rose more than expected month-over-month to its fastest pace in over a decade, jumping 5.00% versus 1.90% per consensus. Single-family starts advanced 3.90% in May after an increase of 2.20% in April, and multifamily starts rose 7.50% in May after declining 13.50% in April. Meanwhile, Building Permits slowed for a second consecutive month which fell 4.60% to 1301k in May following a revised drop of 0.90% 1364k in April.

The curve has bull-flattened with the UST 10-Year yield down 3.1 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/18 NAHB Housing Market Index 07:00 Jun 70.00 68.00 70.00 -  
                   
  06/19 Housing Starts 05:30 May 1311k 1350k 1287k 1286k  
                   
  06/19 Housing Starts MoM 05:30 May 1.90% 5.00% -3.70% -3.10%  
                   
  06/19 Building Permits 05:30 May 1350k 1301k 1352k 1364k  
                   
  06/19 Building Permits MoM 05:30 May -1.00% -4.60% -1.80% -0.90%  
                   
  06/20 MBA Mortgage Applications 04:00 15 Jun - - -1.50% -  
                   
  06/20 Existing Home Sales 07:00 May 5.52m - 5.46m -  
                   
  06/20 Existing Home Sales MoM 07:00 May 1.10% - -2.50% -  
                   
  06/21 Initial Jobless Claims 05:30 16 Jun 220k - 218k -  
                   
  06/21 Continuing Claims 05:30 9 Jun 1710k - 1697k -  
                   
  06/21 Philadelphia Fed Business Outlook 05:30 Jun 29.00 - 34.40 -  
                   
  06/21 FHFA House Price Index MoM 06:00 Apr 0.50% - 0.10% -  
                   
  06/21 Bloomberg Consumer Comfort 06:45 17 Jun - - 55.80 -  
                   
  06/21 Leading Index 07:00 May 0.40% - 0.40% -  
                   
  06/22 Markit US Manufacturing PMI 06:45 Jun P 56.10 - 56.40 -  
                   
  06/22 Markit US Services PMI 06:45 Jun P 56.50 - 56.80 -  
                   
  06/22 Markit US Composite PMI 06:45 Jun P - - 56.60 -  
                   
 
 
 
 
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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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