Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   105-16 (+24.5)  
 
  FN 3.5% Coupon   102-25.5 (+03.5)  
 
  Support   3.237%  
 
  Resistance   1.748%  
 
 
 
 
Monday, August 05, 2019
 
 
Treasury Yields Sharply Lower as China Retaliates
 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 1.7599, 8.53 bps decreased from prior closing of 1.8452.

Stocks plunged and Treasuries led a global bond rally due to an increase in safe haven demand after China struck back against the latest move by the US. China has asked state purchasers to suspend US agricultural imports as a countermeasure against President Trump’s announcement to impose additional 10% tariffs on Chinese imports effective September 1st. China, historically known to control its currency, allowed the yuan tumble to the weakest level in more than a decade which led President Trump to call it “currency manipulation”. He also indicated in his tweet that the Fed should act to counter China’s action. With trade war between the two countries intensifying, benchmark 10-year Treasury yields dropped to their lowest level since 2016. In corporate news, trade bellwether, Caterpillar and Boeing led the slide in premarket. Elsewhere, WTI crude resumed its decline as fears compounded from a deepening trade war which might depress demand.

Market US Services PMI in July climbed to 53.00 from both prior and consensus readings of 52.20. The composite PMI also edged higher to 52.60 following 51.60 in prior month. Lastly, ISM Non-Manufacturing Index in July dropped to 53.70 from 55.10 prior vs. 55.50 consensus. Later today, the US Treasury is scheduled to auction off $39 billion of 3-month bills and $39 billion of 6-month bills at 8:30 AM (PT).

The curve has bull-steepened with UST 10-Year yield down 8.53 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/05 Markit US Services PMI 06:45 Jul F 52.20 53.00 52.20 -  
                   
  08/05 Markit US Composite PMI 06:45 Jul F - 52.60 51.60 -  
                   
  08/06 JOLTS Job Openings 07:00 Jun 7400 - 7323 -  
                   
  08/07 MBA Mortgage Applications 04:00 2 Aug - - -1.40% -  
                   
  08/08 Initial Jobless Claims 05:30 3 Aug 215k - 215k -  
                   
  08/08 Continuing Claims 05:30 27 Jul 1691k - 1699k -  
                   
  08/08 Bloomberg Consumer Comfort 06:45 4 Aug - - 64.70 -  
                   
  08/08 Wholesale Inventories MoM 07:00 Jun F 0.20% - 0.20% -  
                   
  08/09 PPI Final Demand MoM 05:30 Jul 0.20% - 0.10% -  
                   
  08/09 PPI Final Demand YoY 05:30 Jul 1.70% - 1.70% -
                   
 
 
 
 
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.  
 
©2020 Sun West Mortgage Company, Inc. All Rights Reserved