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Market Commentary


 
Today's Coupons
 
  10-Year Notes   100-02.5 (-11)  
 
  FN 3.5% Coupon   102-14 (-05)  
 
  Support   2.382%  
 
  Resistance   2.193%  
 
 
 
 
Thursday, July 6, 2017
 
 
Treasuries are selling off across the curve this morning as investors cautiously continue to be attentive of central banks.The UST 10-Year yield is currently at 2.364% after closing at 2.324% prior.

This morning we received MBA Mortgage Applications for the week ending on June 30th, which rose 1.40% in activities after falling 6.20% the week prior. Purchase applications rose 3.10% after falling 4.10% the week prior, and refinancing activities fell 0.40% after dropping 8.60% the week prior. The June ADP employment came in 30k below expectations at 158k versus 188k per consensus, following a downwardly revised 230k increase in May, showing a slowing in the labor market.

Initial Jobless Claims for the week of July 1st rose 4k to 248k from an unrevised 244k the week prior. Continuing Claims for the week of June 24th rose 11k to 1956k from a downwardly revised 1945k the week prior. We also received the Trade Balance for May, which showed that the deficit narrowed by $1.10 Billion to $46.50 Billion versus $47.60 Billion in April. Lastly, we received the final reading of the June Markit US Services PMI which came in above expectations at 54.20 versus 53.00 per consensus. Markit US Composite PMI read at 53.00, unchanged from prior.

The curve has bear-steepened with the UST 10-Year up 4.0 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  07/03 Markit US Manufacturing PMI 06:45 Jun F 52.10 52.00 52.10 -  
                   
  07/03 ISM Manufacturing 07:00 Jun 55.30 57.80 54.90 -  
                   
  07/03 ISM Prices Paid 07:00 Jun 58.50 55.00 60.50 -  
                   
  07/03 Construction Spending MoM 07:00 May 0.30% 0.00% -1.40% -0.70%  
                   
  07/04 No Data - - - - - -  
                   
  07/05 Factory Orders 07:00 May -0.50% -0.80% -0.20% -0.30%  
                   
  07/05 Durable Goods Orders 07:00 May F -0.80% -0.80% -1.10% -  
                   
  07/05 Durables Ex Transportation 07:00 May F - 0.30% 0.10% -  
                   
  07/05 FOMC Meeting Minutes 11:00 14 Jun - - - -  
                   
  07/06 MBA Mortgage Applications 04:00 30 Jun - 1.40% -6.20% -  
                   
  07/06 Challenger Job Cuts YoY 04:30 Jun - -19.30% 9.70% -  
                   
  07/06 ADP Employment Change 05:15 Jun 188k 158k 253k 230k  
                   
  07/06 Initial Jobless Claims 05:30 1 Jul 243k 248k 244k -  
                   
  07/06 Continuing Claims 05:30 24 Jun 1940k 1956k 1948k 1945k  
                   
  07/06 Trade Balance 05:30 May -$46.30b -$46.50b -$47.60b -  
                   
  07/06 Markit US Services PMI 06:45 Jun F 53.00 54.20 53.00 -  
                   
  07/06 Bloomberg Consumer Comfort 06:45 2 Jul - 48.50 48.60 -  
                   
  07/06 Markit US Composite PMI 06:45 Jun F - 53.00 53.00 -  
                   
  07/07 Change in Nonfarm Payrolls 05:30 Jun 177k - 138k -  
                   
  07/07 Unemployment Rate 05:30 Jun 4.30% - 4.30% -  
                   
  07/07 Average Hourly Earnings MoM 05:30 Jun 0.30% - 0.20% -  
                   
  07/07 Average Hourly Earnings YoY 05:30 Jun 2.60% - 2.50% -  
                   
  07/07 Labor Force Participation Rate 05:30 Jun 62.70% - 62.70% -  
                   
  07/07 Underemployment Rate 05:30 Jun - - 8.40% -  
                   
 
 
 
 
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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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