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Market Commentary



 
Today's Coupons
 
  10-Year Notes   100-10 (+07)  
 
  FN 2.5% Coupon   104-21 (+03.5)  
 
  Support   2.065%  
 
  Resistance   0.559%  
 
 
 
 
  Tuesday, July 28, 2020
 
 

Treasury Yields Fall as Equities Fall on Weak Earnings

 
 
Market opened today’s session with treasuries slightly edging higher across all maturities. 10-Year Treasury yield is at 0.5872, 2.79 bps decreased from prior closing of 0.6151.

Stocks fell this morning as McDonald's Corp, 3M Co., and Harley Davidson Inc. all missed second quarter estimates. Pfizer Inc. soared after raising earnings forecast and beginning a late stage trial for coronavirus vaccine with its German partner. Eastman Kodak Co. also climbed on news it had received a US government loan. Optimism for a COVID 19 cure have been tapered as cases continue to rise worldwide. While US hotspots have demonstrated improving statistics, countries which had previously brought down outstanding cases, such as China, Hong Kong, and Spain, are now on the lookout for outbreaks in certain areas. In other news, Senate Republicans released a $1 trillion counter to the proposed $3.5 trillion aid package proposed by the house. The counter offer includes a provision to continue $1,200 payments to individuals, as was previously carried out by the cares act. On the economic front, the Conference Board Consumer Confidence announced a value of 92.60 against expectations of 95.00. This number is important as it demonstrates prevailing conditions in the months ahead are expected to deteriorate as consumer confidence wanes. The Richmond Manufacturing Index reported a value of 10.00 in contrast to the expected value of 5.00. This report is important as it showcases how the manufacturing sector has rebounded for the month of July. MBA Mortgage Applications, Wholesale Inventories MoM and FOMC Rate Decision will all be announcing figures tomorrow at 04:00 AM (PT), 5:30 AM (PT), and 11:00 AM (PT) respectively.

The curve has bull-flattened with UST 10-Year yield down 2.79 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  07/27 Durable Goods Orders 05:30 Jun P 6.90% 7.30% 15.70% 15.10%  
                   
  07/27 Durables Ex Transportation 05:30 Jun P 3.60% 3.30% 3.70% 3.60%  
                   
  07/27 Dallas Fed Manf. Activity 07:30 Jul -4.80 -3.00 -6.10 -  
                   
  07/28 S&P CoreLogic CS 20-City MoM SA 06:00 May 0.30% 0.04% 0.33% 0.24%  
                   
  07/28 S&P CoreLogic CS 20-City YoY NSA 06:00 May 4.00% 3.69% 3.98% 3.91%  
                   
  07/28 Richmond Fed Manufact. Index 07:00 Jul 5.00 10.00 0.00 -  
                   
  07/29 MBA Mortgage Applications 04:00 24 Jul - - 4.10% -  
                   
  07/30 GDP Annualized QoQ 05:30 2Q A -34.80% - -5.00% -  
                   
  07/30 Personal Consumption 05:30 2Q A -34.50% - -6.80% -  
                   
  07/30 GDP Price Index 05:30 2Q A 0.00% - 1.40% -  
                   
  07/30 Core PCE QoQ 05:30 2Q A -0.90% - 1.70% -  
                   
  07/30 Initial Jobless Claims 05:30 25 Jul 1430k - 1416k -  
                   
  07/30 Continuing Claims 05:30 18 Jul 16250k - 16197k -  
                   
  07/30 Bloomberg Consumer Comfort 06:45 26 Jul - - 44.70 -  
                   
  07/31 Personal Income 05:30 Jun -0.70% - -4.20% -  
                   
  07/31 Personal Spending 05:30 Jun 5.20% - 8.20% -  
                   
  07/31 PCE Deflator MoM 05:30 Jun 0.40% - 0.10% -  
                   
  07/31 PCE Deflator YoY 05:30 Jun 0.90% - 0.50% -  
                   
  07/31 U. of Mich. Sentiment 07:00 Jul F 72.80 - 73.20 -
                   
 
 
 
 
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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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