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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   100-20.5 (-06.5)  
 
  FN 2.5% Coupon   105-04 (+01.5)  
 
  Support   1.942%  
 
  Resistance   0.520%  
 
 
 
 
  Monday, August 3, 2020
 
 

Treasury Yields Rise as Tech Sector Outperforms

 
 
Market opened today’s session with treasuries lowering across all maturities. 10-Year Treasury yield is at 0.5592, 3.10 bps increased from prior closing of 0.5282.

US stocks rose this morning as tech sector displayed strength along with positive economic data. Apple reached an all-time high and Microsoft also gained after it confirmed talks to buy TikTok’s operations in the US. On the economic front, Markit US Manufacturing PMI slightly edged lower to 50.90 from 51.30 prior but ISM Manufacturing index in July rose to 54.20 from 52.60 prior, marking the fastest pace of an expansion since March 2019 as more factories boosted production. ISM Prices Paid also edged higher to 53.20 from 51.30 prior and lastly, Construction Spending in Jun increased to -0.70% from an upwardly revised prior of -1.70% as well. On the pandemic front, some countries are reportedly considering another lockdown over a resurgence of the confirmed cases and the White House announced that they are considering whether President Trump can act on his own to extend enhanced unemployment benefits. Both Treasuries and gold inched lower this morning. Elsewhere, WTI crude hovered around $40 a barrel as OPEC+ producers started supplying more to markets where many countries are still struggling with the virus.

The curve has bear-steepened with UST 10-Year yield up 3.10 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/03 ISM Manufacturing 07:00 Jul 53.60 54.20 52.60 -  
                   
  08/03 ISM Prices Paid 07:00 Jul 52.00 53.20 51.30 -  
                   
  08/03 Construction Spending MoM 07:00 Jun 1.00% -0.70% -2.10% -1.70%  
                   
  08/04 Factory Orders 07:00 Jun 5.00% - 8.00% -  
                   
  08/04 Durable Goods Orders 07:00 Jun F 7.30% - 7.30% -  
                   
  08/04 Durables Ex Transportation 07:00 Jun F 3.30% - 3.30% -  
                   
  08/05 MBA Mortgage Applications 04:00 31 Jul - - -0.80% -  
                   
  08/05 ADP Employment Change 05:15 Jul 1200k - 2369k -  
                   
  08/05 Trade Balance 05:30 Jun -$50.20b - -$54.60b -  
                   
  08/05 Markit US Services PMI 06:45 Jul F 49.60 - 49.60 -  
                   
  08/05 Markit US Composite PMI 06:45 Jul F - - 50.00 -  
                   
  08/06 Initial Jobless Claims 05:30 1 Aug 1415K - 1434K -  
                   
  08/06 Continuing Claims 05:30 25 Jul 16900K - 17018K -  
                   
  08/06 Bloomberg Consumer Comfort 06:45 2 Aug - - 44.30 -  
                   
  08/07 Change in Nonfarm Payrolls 05:30 Jul 1500K - 4800K -  
                   
  08/07 Average Hourly Earnings MoM 05:30 Jul -0.50% - -1.20% -  
                   
  08/07 Average Hourly Earnings YoY 05:30 Jul 4.20% - 5.00% -
                   
 
 
 
 
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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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