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Market Commentary


 
Today's Coupons
 
  10-Year Notes   100-09.5 (+08.5)  
 
  FN 3.5% Coupon   99-16 (+06)  
 
  Support   3.111%  
 
  Resistance   2.759%  
 
 
 
 
Tuesday, July 03, 2018
 
 
Treasuries are higher across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.846% after closing at 2.872% prior.

Treasuries saw a slight drop overnight as most stock markets rebounded on a mixed Asian session after China’s central bank vowed to keep its currency at a stable and reasonable level. Governor Yi Gang of the People’s Bank of China added that China will not use the yuan as a weapon in the ongoing trade dispute with the U.S. Some of the overnight losses have been reversed as Treasuries began an upwardly trend from early sessions. This morning we received the May Factory Orders which rose 0.40% following a revised 0.40% drop prior. Factory Orders excluding Transportation gained 0.70% month-over-month following a revised 0.90% increase in April.

We also received the May Durable Goods Orders which fell 0.40% month-over-month following an unrevised 0.60% drop in April; consensus called for a 0.50% drop for the month so the index came in slightly better than expected. Durables excluding Transportation reflected a 0.00% gain month-over-month after slipping 0.30% prior. Lastly, we received the May Capital Goods Orders Nondefense which rose 0.30% month-over-month after dropping 0.20% in April. Capital Goods Ship Nondefense jumped 0.20% in May following a 0.10% drop the month prior.

The curve has bull-flattened with the UST 10-Year yield down 2.6 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  07/02 Markit US Manufacturing PMI 06:45 Jun F 54.60 55.40 54.60 -  
                   
  07/02 Construction Spending MoM 07:00 May 0.50% 0.40% 1.80% 0.90%  
                   
  07/02 ISM Manufacturing 07:00 Jun 58.50 60.20 58.70 -  
                   
  07/02 ISM Prices Paid 07:00 Jun 75.00 76.80 79.50 -  
                   
  07/03 Factory Orders 07:00 May 0.00% 0.40% -0.80% -0.40%  
                   
  07/03 Durable Goods Orders 07:00 May F -0.50% -0.40% -0.60% -  
                   
  07/03 Durables Ex Transportation 07:00 May F - 0.00% -0.30% -  
                   
  07/04 MBA Mortgage Applications 04:00 29 Jun - - -4.90% -  
                   
  07/05 Challenger Job Cuts YoY 04:30 Jun - - -4.80% -  
                   
  07/05 ADP Employment Change 05:15 Jun 190k - 178k -  
                   
  07/05 Initial Jobless Claims 05:30 30 Jun 225k - 227k -  
                   
  07/05 Continuing Claims 05:30 23 Jun 1718k - 1705k -  
                   
  07/05 Bloomberg Consumer Comfort 06:45 1 Jul - - 57.30 -  
                   
  07/05 Markit US Services PMI 06:45 Jun F 56.50 - 56.50 -  
                   
  07/05 Markit US Composite PMI 06:45 Jun F - - 56.00 -  
                   
  07/05 FOMC Meeting Minutes 11:00 13 Jun - - - -  
                   
  07/06 Trade Balance 05:30 May -$43.70b - -$46.20b -  
                   
  07/06 Change in Nonfarm Payrolls 05:30 Jun 195k - 223k -  
                   
  07/06 Unemployment Rate 05:30 Jun 3.80% - 3.80% -  
                   
  07/06 Average Hourly Earnings MoM 05:30 Jun 0.30% - 0.30% -  
                   
  07/06 Average Hourly Earnings YoY 05:30 Jun 2.80% - 2.70% -  
                   
  07/06 Labor Force Participation Rate 05:30 Jun 62.70% - 62.70% -  
                   
 
 
 
 
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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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