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Market Commentary


 
Today's Coupons
 
  10-Year Notes   100-04.5 (+02.5)  
 
  FN 3.5% Coupon   99-13.5 (+02.5)  
 
  Support   3.111%  
 
  Resistance   2.813%  
 
 
 
 
Wednesday, July 11, 2018
 
 
Treasuries are slightly lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.857% after closing at 2.851% prior.

Trade war jitters resurfaced late Tuesday after the Trump Administration announced to impose another 10 percent tariffs on $200 Billion more of Chinese made-products in addition to the initial $50 Billion already initiated. Chinese President Xi Jinping has already vowed to retaliate against every trade action from President Trump, and the tone in his response yesterday remained unchanged as he promised “firm and forceful measures” against the U.S. This morning we received the June PPI Final Demand which rose 0.30% MoM following a 0.50% gain prior, bringing its YoY up to 3.40% from 3.10% prior. PPI excluding Food and Energy MoM increased higher than expected at 0.30% versus 0.20% per consensus, bringing its YoY up to 2.80% from 2.40% prior.

MBA Mortgage Applications for the week ended July 6 rose 2.50% following a 0.50% drop in activities the week prior. Purchase applications were up 6.50% for the week after rising 0.50% the week prior, while refinancing activities fell 3.80% after dropping 2.00% the week prior. We also received the Wholesale Inventories for May which rose 0.60% MoM versus a 0.50% increase prior. Later today at 10:00 AM (PT), U.S. will sell $22 Billion of 10-Year Notes Reopening. Then at 1:30 PM (PT), New York Fed President Williams will speak to business and community leaders in Brooklyn.

The curve has bear-flattened with the UST 10-Year yield up 0.6 bp from prior closing.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  07/09 Consumer Credit 12:00 May $12.000b $24.559b $9.262b $10.273b  
                   
  07/10 NFIB Small Business Optimism 03:00 Jun 106.90 107.20 107.80 -  
                   
  07/10 JOLTS Job Openings 07:00 May 6620 6638 6698 6840  
                   
  07/11 MBA Mortgage Applications 04:00 6 Jul - 2.50% -0.50% -  
                   
  07/11 PPI Final Demand MoM 05:30 Jun 0.20% 0.30% 0.50% -  
                   
  07/11 PPI Final Demand YoY 05:30 Jun 3.10% 3.40% 3.10% -  
                   
  07/11 Wholesale Trade Sales MoM 07:00 May 0.50% 2.50% 0.80% 1.40%  
                   
  07/11 Wholesale Inventories MoM 07:00 May F 0.50% 0.60% 0.50% -  
                   
  07/12 Initial Jobless Claims 05:30 7 Jul 225k - 231k -  
                   
  07/12 Continuing Claims 05:30 30 Jun 1730k - 1739k -  
                   
  07/12 CPI MoM 05:30 Jun 0.20% - 0.20% -  
                   
  07/12 CPI YoY 05:30 Jun 2.90% - 2.80% -  
                   
  07/12 Bloomberg Consumer Comfort 06:45 8 Jul - - 57.60 -  
                   
  07/12 Monthly Budget Statement 11:00 Jun -$80.00b - -$146.80b -  
                   
  07/13 Import Price Index MoM 05:30 Jun 0.10% - 0.60% -  
                   
  07/13 Import Price Index YoY 05:30 Jun 4.70% - 4.30% -  
                   
  07/13 Export Price Index MoM 05:30 Jun 0.20% - 0.60% -  
                   
  07/13 Export Price Index YoY 05:30 Jun - - 4.90% -  
                   
  07/13 U. of Mich. Sentiment 07:00 Jul P 98.20 - 98.20 -  
                   
 
 
 
 
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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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