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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   99-30 (-02)  
 
  FN 2.5% Coupon   104-16 (+00.5)  
 
  Support   2.103%  
 
  Resistance   0.571%  
 
 
 
 
  Wednesday, July 15, 2020
 
 

Treasury Yields Climb on Positive Vaccine Results

 
 
Market opened today’s session with treasuries edging lower across all maturities. 10-year Treasury yield is at 0.6348, 1.15 bps increased from prior closing of 0.6233.

US stocks rallied on the back of positive news on developing a vaccine for coronavirus from Moderna. Moderna surged to a record after the company reported promising trial results. Airlines, cruise lines, and hotel shares added to today’s gains in equities which placed the S&P 500 up more than 42% from the March lows, putting the index just below breakeven for the year. Goldman Sachs also rallied after reporting quarterly results that topped analyst expectations. Strong readings on industrial production and manufacturing added to risk-on sentiment as well. Empire Manufacturing index in July surged to 17.20 from -0.20 prior vs. 10.00 consensus and Industrial Production in June also climbed to 5.40% from 1.40% prior vs. 4.30% consensus. MBA mortgage applications index rose 5.10% after rising 2.20% in prior week. Purchases decreased 6.10% and refinances increased 11.90% after rising 5.30% and 0.40% in prior week, respectively. Elsewhere, Treasuries and gold declined. WTI crude traded above $40 a barrel this morning after a report pointed to a decline in US crude stockpiles. Later today, the Fed will be releasing Beige Book at 11:00 AM (PT) which is expected to shed some light on where the current economy is heading toward.

The curve has bear-steepened with UST 10-Year yield up 1.15 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  07/13 Monthly Budget Statement 11:00 Jun -$863.0b -$864.1b -$8.5b -  
                   
  07/14 NFIB Small Business Optimism 03:00 Jun 97.80 100.60 94.40 -  
                   
  07/14 CPI MoM 05:30 Jun 0.50% 0.60% -0.10% -  
                   
  07/14 CPI YoY 05:30 Jun 0.60% 0.60% 0.10% -  
                   
  07/14 CPI Index NSA 05:30 Jun 257.706 257.797 256.394 -  
                   
  07/14 CPI Core Index SA 05:30 Jun 265.884 266.065 265.441 -  
                   
  07/15 MBA Mortgage Applications 04:00 10 Jul - 5.10% 2.20% -  
                   
  07/15 Import Price Index MoM 05:30 Jun 1.00% 1.40% 1.00% 0.80%  
                   
  07/15 Import Price Index YoY 05:30 Jun -3.70% -3.80% -6.00% -6.20%  
                   
  07/15 Export Price Index MoM 05:30 Jun 0.80% 1.40% 0.50% 0.40%  
                   
  07/15 Export Price Index YoY 05:30 Jun - -4.40% -6.00% -6.20%  
                   
  07/16 Initial Jobless Claims 05:30 11 Jul 1250k - 1314k -  
                   
  07/16 Continuing Claims 05:30 4 Jul 17500k - 18062k -  
                   
  07/16 Bloomberg Consumer Comfort 06:45 12 Jul - - 42.90 -  
                   
  07/17 U. of Mich. Sentiment 07:00 Jul P 79.00 - 78.10 -
                   
 
 
 
 
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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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