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Market Commentary


 
Today's Coupons
 
  10-Year Notes   102-14 (+07)  
 
  FN 3.5% Coupon   102-04 (+01.5)  
 
  Support   3.237%  
 
  Resistance   1.939%  
 
 
 
 
Monday, July 15, 2019
 
 
Treasury Yields Lower as Investors Await Earnings Reports
 
 
Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 2.0992, 2.27 bps decreased from prior closing of 2.1219.

Stocks nudged lower at the start of a busy week for corporate earnings reports. Treasuries gained and the dollar stayed unchanged. Citigroup Inc kicked off the earnings season by posting second quarter results which topped analysts’ expectations. However, its profit and revenue on gains from the initial public offering of Tradeweb were basically muted by declines in trading and investment banking revenue and losses on loan hedges. Other industry giants including JP Morgan Chase, Wells Fargo, and Goldman Sachs will report their results tomorrow. Aside from the earnings season, investors will be sifting through speeches as many Fed officials are scheduled to speak this week after Fed Chair Powell hinted a rate cut to bolster growth and inflation last week. Meanwhile, China reported its economic growth data slowing to 6.20%, marking the weakest pace since quarterly data began in 1992. President Trump chimed in on the data, saying “this is why China wants to make a deal”. Elsewhere, WTI crude slightly edged higher, trading above $60 a barrel this morning.

Empire Manufacturing in July improved to 4.30 vs. 2.00 consensus following a slump of -8.60 in June. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 2.27 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  07/15 Empire Manufacturing 05:30 Jul 2.00 4.30 -8.60 -  
                   
  07/16 Import Price Index MoM 05:30 Jun -0.70% - -0.30% -  
                   
  07/16 Import Price Index YoY 05:30 Jun -2.30% - -1.50% -  
                   
  07/16 Export Price Index MoM 05:30 Jun -0.30% - -0.20% -  
                   
  07/16 Export Price Index YoY 05:30 Jun - - -0.70% -  
                   
  07/16 Retail Sales Advance MoM 05:30 Jun 0.10% - 0.50% -  
                   
  07/16 Industrial Production MoM 06:15 Jun 0.10% - 0.40% -  
                   
  07/16 Capacity Utilization 06:15 Jun 78.10% - 78.10% -  
                   
  07/16 NAHB Housing Market Index 07:00 Jul 64.00 - 64.00 -  
                   
  07/17 MBA Mortgage Applications 04:00 12 Jul - - -2.40% -  
                   
  07/17 Housing Starts 05:30 Jun 1260k - 1269k -  
                   
  07/17 Housing Starts MoM 05:30 Jun -0.70% - -0.90% -  
                   
  07/17 Building Permits 05:30 Jun 1300k - 1294k 1299k  
                   
  07/17 Building Permits MoM 05:30 Jun 0.10% - 0.30% 0.70%  
                   
  07/17

U.S. Federal Reserve Releases Beige

Book

11:00 - - - - -  
                   
  07/18 Initial Jobless Claims 05:30 13 Jul 216k - 209k -  
                   
  07/18 Continuing Claims 05:30 6 Jul 1703k - 1723k -  
                   
  07/18 Philadelphia Fed Business Outlook 05:30 Jul 5.00 - 0.30 -  
                   
  07/18 Bloomberg Consumer Comfort 06:45 14 Jul - - 63.80 -  
                   
  07/18 Leading Index 07:00 Jun 0.10% - 0.00% -  
                   
  07/19 U. of MichSentiment 07:00 Jul P 98.70 - 98.20 -
                   
 
 
 
 
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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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