Back to top

Market Commentary

Home
Market Commentary



 
Today's Coupons
 
  10-Year Notes   100-24 (+09.5)  
 
  FN 2.5% Coupon   104-30 (+01.5)  
 
  Support   2.058%  
 
  Resistance   0.538%  
 
 
 
 
  Thursday, July 30, 2020
 
 

Treasury Yields and Equities Fall as US GDP sets Record Low

 
 
Market opened today’s session with treasuries edging higher across all maturities. 10-Year Treasury yield is at 0.5446, 2.95 bps decreased from prior closing of 0.5741.

Stocks opened lower on news that the US had its largest contraction since 1947 and the number of Americans filing for unemployment benefits rose. Federal Reserve Chairman Jerome Powell has alluded to heavy uncertainty for the economy going forward, additionally noting the increase in recent COVID cases has begun weighing on economic activity. Earnings season is in full force today with tech giants Apple Inc., Amazon.com Inc., Alphabet Inc., and Facebook Inc. due to report earnings today after market close. In other news; United Parcel Service Inc. surged after beating estimates, Proctor and Gamble Co. reported increased demand for detergent as consumers continued stockpiling, and Mastercard Inc. reported a rebound in consumer purchases for the month of July. On the economic front, annualized US GDP shrank at a record 32.90% in Q2, with annualized personal consumption slumping by 34.60%. Initial jobless claims rose to 1.4 million for a second week in a row, continuing the reversal of a previous downtrend as rising COVID cases cases continue to threaten reopening progress. Businesses that involve many people in close proximity are the ones hurting the most as pointed out by Jerome Powell after announcing the central bank will be keeping interest rates near zero yesterday. Personal income and spending will be reported tomorrow at 5:30 AM (PT), with personal income expected to decrease by 0.60% in comparison to a prior decrease of 4.20%, and personal spending is expected to increase by 5.20% in comparison to a prior increase of 8.20%.

The curve has bull-flattened with UST 10-Year yield down 2.95 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 - -0.80% 4.10% -  
                   
  07/30 GDP Annualized QoQ 05:30 2Q A -34.50% -32.90% -5.00% -  
                   
  07/30 Personal Consumption 05:30 2Q A -34.50% -34.60% -6.80% -6.90%  
                   
  07/30 GDP Price Index 05:30 2Q A -0.10% -1.80% 1.40% -  
                   
  07/30 Core PCE QoQ 05:30 2Q A -0.90% -1.10% 1.70% 1.60%  
                   
  07/30 Initial Jobless Claims 05:30 25 Jul 1445k 1434k 1416k 1422k  
                   
  07/30 Continuing Claims 05:30 18 Jul 16200k 17018k 16197k 16151k  
                   
  07/30 Bloomberg Consumer Comfort 06:45 26 Jul - 44.30 44.70 -  
                   
  07/31 Personal Income 05:30 Jun -0.60% - -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 72.90 - 73.20 -
                   
 
 
 
 
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
 
 
   
 
  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.  
 
 
© Sun West Mortgage Company, Inc. All Rights Reserved