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Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-25.5 (+11)  
 
  FN 2.5% Coupon   104-03 (+03.5)  
 
  Support   2.138%  
 
  Resistance   0.638%  
 
 
 
 
  Friday, June 26, 2020
 
 

Treasury Yields Lower as Stocks Fall after Fed's Annual Stress Test

 
 
Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 0.6528, 3.28 bps decreased from prior closing of 0.6856.

Stocks sold-off Friday after the Fed’s annual stress test of the major banks showed some banks could get close to minimum capital levels in the pandemic related scenarios. Banking sector led today’s losses in equities and Nike also slid after reporting a loss of 51 cents per share and revenue of $6.31 billion for its fiscal fourth quarter. On the pandemic front, Texas governor announced this morning that he will roll back some of the state’s reopening as the confirmed cases and hospitalizations continue to rise. This announcement came a day after pausing its reopening plans. Also affected by the increase in coronavirus cases, the number of active mortgage forbearance plans rose by 79,000 in the past week. As of Tuesday, 4.68 million homeowners were in forbearance plans, allowing them to delay their mortgage payments for at least three months. This represents 8.8% of all active mortgages, up from 8.7% last week. Treasuries advanced and gold headed for a third weekly advance, the longest winning run since January. In the economic calendar, Personal Income plunged to -4.20% in May from an upwardly revised prior of 10.80%. On the contrary, Personal Spending sharply rose to 8.20% from a revised prior of -12.60%. Lastly, University of Michigan Sentiment slightly edged lower to 78.10 from 78.90 prior vs. 79.20 consensus.

The curve has bull-flattened with UST 10-Year yield down 3.28 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  06/22 Chicago Fed Nat Activity Index 05:30 May -10.00 2.61 -16.74 -17.89  
                   
  06/22 Existing Home Sales 07:00 May 4.09m 3.91m 4.33m -  
                   
  06/22 Existing Home Sales MoM 07:00 May -5.60% -9.70% -17.80% -  
                   
  06/23 Markit US Services PMI 06:45 Jun P 48.00 46.70 37.50 -  
                   
  06/23 Markit US Composite PMI 06:45 Jun P - 46.80 37.00 -  
                   
  06/23 Richmond Fed Manufact. Index 07:00 Jun -2 0 -27 -  
                   
  06/24 MBA Mortgage Applications 04:00 19 Jun - -8.70% 8.00% -  
                   
  06/24 FHFA House Price Index MoM 06:00 Apr 0.30% 0.20% 0.10% -  
                   
  06/25 GDP Annualized QoQ 05:30 1Q T -5.00% -5.00% -5.00% -  
                   
  06/25 Durable Goods Orders 05:30 May P 10.50% 15.80% -17.70% -18.10%  
                   
  06/25 Durables Ex Transportation 05:30 May P 2.10% 4.00% -7.70% -8.20%  
                   
  06/25 Initial Jobless Claims 05:30 20 Jun 1320k 1480k 1508k 1540k  
                   
  06/25 Continuing Claims 05:30 13 Jun 20000k 19522k 20544k 20289k  
                   
  06/25 Bloomberg Consumer Comfort 06:45 21 Jun - 41.40 40.20 -  
                   
  06/26 Personal Income 05:30 May -6.00% -4.20% 10.50% 10.80%  
                   
  06/26 Personal Spending 05:30 May 9.30% 8.20% -13.60% -12.60%  
                   
  06/26 PCE Deflator MoM 05:30 May 0.00% 0.10% -0.50% -  
                   
  06/26 PCE Deflator YoY 05:30 May 0.50% 0.50% 0.50% 0.60%  
                   
  06/26 U. of Mich. Sentiment 07:00 Jun F 79.20 78.10 78.90 -
                   
 
 
 
 
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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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