Back to top

Market Commentary

Home
Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   99-16 (-10.5)  
 
  FN 2.5% Coupon   104-26.5 (-01.5)  
 
  Support   1.942%  
 
  Resistance   0.505%  
 
 
 
 
  Wednesday, August 12, 2020
 
 

Treasury Yields Rise As CPI Increases

 
 
Market opened today’s session with treasuries inching lower across all maturities. 10-year Treasury yield is at 0.6830, 4.15 bps increased from prior closing of 0.6415.

US Stocks opened higher as recent underperforming equities rallied. Similarly, Europe saw early market gainers in ABN Amro Bank NV and HSBC Holdings Plc as they offset recent drops in technology and real estate shares. Silver and gold rebounded, driven by advances in bond yields. Investors continue watching whether a rotation in equities comes to fruition after pandemic high-flyers including Advanced Micro Devices and Zoom Video Communications tumbled yesterday. Elsewhere, Europe's corporate bond spreads narrowed to their tightest in early March, just a few basis points away from pre-virus levels. Crude futures headed toward a five-month high. On the economic front MBA mortgage applications rose 6.80% in the week ending August 7, after falling 5.10% the week prior. Notably, purchases and refi's were up 2.00% and 9.10% respectively, with the average 30-year fixed rate standing at 3.06%. CPI MoM beat expectations after rising 0.60% for the month of July. This comes as US consumer prices rose more than expected, specifically within the apparel and auto industries, all the while inflation remained broadly muted as the pandemic suppressed demand. Initial Jobless Claims will be reported tomorrow with expectations set at 1.1 million claims.

The curve has bear-steepened with UST 10-Year yield up 4.15 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/10 JOLTS Job Openings 07:00 Jun 5300 5889 5397 5371  
                   
  08/11 NFIB Small Business Optimism 03:00 Jul 100.50 98.80 100.60 -  
                   
  08/11 PPI Final Demand MoM 05:30 Jul 0.30% 0.60% -0.20% -  
                   
  08/11 PPI Final Demand YoY 05:30 Jul -0.70% -0.40% -0.80% -  
                   
  08/12 MBA Mortgage Applications 04:00 7 Aug - 6.80% -5.10% -  
                   
  08/12 CPI MoM 05:30 Jul 0.30% 0.60% 0.60% -  
                   
  08/12 CPI YoY 05:30 Jul 0.70% 1.00% 0.60% -  
                   
  08/12 CPI Index NSA 05:30 Jul 258.540 259.101 257.797 -  
                   
  08/12 CPI Core Index SA 05:30 Jul 266.585 267.715 266.065 -  
                   
  08/12 Monthly Budget Statement 11:00 Jul -$90.00B - -$119.70B    
                   
  08/13 Import Price Index MoM 05:30 Jul 0.60% - 1.40% -  
                   
  08/13 Import Price Index YoY 05:30 Jul -3.10% - -3.80% -  
                   
  08/13 Export Price Index MoM 05:30 Jul 0.40% - 1.40% -  
                   
  08/13 Export Price Index YoY 05:30 Jul - - -4.40% -  
                   
  08/13 Initial Jobless Claims 05:30 8 Aug 1100k - 1186k -  
                   
  08/13 Continuing Claims 05:30 1 Aug 15800k - 16107k -  
                   
  08/13 Bloomberg Consumer Comfort 06:45 9 Aug - - 44.90 -  
                   
  08/14 U. of Mich. Sentiment 07:00 Aug P 72.00 - 72.50 -
                   
 
 
 
 
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