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Market Commentary


 
Today's Coupons
 
  10-Year Notes   100-15 (00)  
 
  FN 3.5% Coupon   99-19.5 (+0.5)  
 
  Support   3.111%  
 
  Resistance   2.810%  
 
 
 
 
Thursday, August 23, 2018
 
 
Treasuries are little unchanged across the curve this morning from yesterday's close. The UST 10-Year yield is currently at 2.822% after closing at 2.820% prior.

Treasuries held steady overnight and into the open ahead of the annual meeting of global central bankers hosted by the Feds in Jackson Hole, Wyoming. Yesterday the FOMC Minutes from the Fed's last meeting showed no changes to the pace of monetary policy tightening, and that a September rate hike would be appropriate if the economy remains strong. Yesterday, U.S. and China officials began their first formal meeting since May aimed to resolve the ongoing trade conflict; the meeting is scheduled to conclude later today. In the midst of the trade meeting, the newest round of tariffs worth $16 Billion of imports was imposed.

On the economic calendar, Initial Jobless Claims for the week ended August 18 fell again from 212k to 210k which marks its second lowest level on record since 1973. Continuing Claims for the week ended August 11 lowered to 1727k from 1729k revised prior. We also received the June FHFA House Price Index which rose 0.20% MoM following an upwardly revised 0.40% rise in May. Moreover, the 2Q House Price Purchase Index came in at 1.10% versus 1.90% revised prior. Also on the calendar, the Markit US Manufacturing PMI was slightly below expectations at 54.50 versus 55.00 per consensus. Markit US Services PMI came in at 55.20 versus 56.00 prior, while the Markit US Composite PMI came in at 55.00 versus 55.70 prior. Lastly, we received the July New Home Sales which fell 1.70% MoM to 627k following a revised 2.40% drop to 638k prior.

The curve has bear-flattened with the UST 10-Year yield up 0.2 bp from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/20 No Data - - - - - -  
                   
  08/21 No Data - - - - - -  
                   
  08/22 MBA Mortgage Applications 04:00 17 Aug - 4.20% -2.00% -  
                   
  08/22 Existing Home Sales 07:00 Jul 5.40m 5.34m 5.38m -  
                   
  08/22 Existing Home Sales MoM 07:00 Jul 0.40% -0.70% -0.60% -  
                   
  08/22 FOMC Meeting Minutes 11:00 1 Aug - - - -  
                   
  08/23 Initial Jobless Claims 05:30 18 Aug 215k 210k 212k -  
                   
  08/23 Continuing Claims 05:30 11 Aug 1730k 1727k 1721k 1729k  
                   
  08/23 FHFA House Price Index MoM 06:00 Jun 0.30% 0.20% 0.20% 0.40%  
                   
  08/23 Bloomberg Consumer Comfort 06:45 19 Aug - 58.60 58.90 -  
                   
  08/23 Markit US Manufacturing PMI 06:45 Aug P 55.00 54.50 55.30 -  
                   
  08/23 Markit US Services PMI 06:45 Aug P 55.80 55.20 56.00 -  
                   
  08/23 Markit US Composite PMI 06:45 Aug P - 55.00 55.70 -  
                   
  08/23 New Home Sales 07:00 Jul 645k 627k 631k 638k  
                   
  08/23 New Home Sales MoM 07:00 Jul 2.20% -1.70% -5.30% -2.40%  
                   
  08/23 Kansas City Fed Manf. Activity 08:00 Aug 23.00 - 23.00 -  
                   
  08/24 Durable Goods Orders 05:30 Jul P -1.00% - 0.80% -  
                   
  08/24 Durables Ex Transportation 05:30 Jul P 0.50% - 0.20% -  
                   
 
 
 
 
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  This information is provided solely for informational use and is not intended as trading or investment advice 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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