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Market Commentary


 
Today's Coupons
 
  10-Year Notes   100-15 (+10.5)  
 
  FN 3.5% Coupon   102-19.5 (+03.5)  
 
  Support   3.237%  
 
  Resistance   1.492%  
 
 
 
 
Friday, August 23, 2019
 
 
Treasury Yields Lower as China Retaliates
 
 
Market opened today’s session with treasuries rallying across all maturities. 10-Year Treasury yield is at 1.5791, 3.40 bps decreased from prior closing of 1.6131.

US stock index futures pointed to a lower open this morning after China retaliated with tariffs on $75 billion of US goods including autos which will be implemented in two batches on September 1st and December 15th, worsening the dispute between the two largest economies that jeopardizes the global economy. General Motors, Ford Motor, Fiat Chrysler, and Tesla fell in premarket on the news. Against remarks pushing back against policy easing recently made by three regional Fed presidents, St. Louis Fed President Bullard said he wanted to see more interest rate cuts in order to protect the economy from a possible global economic slowdown. The highly anticipated speech from Fed Chair Powell was somewhat dovish but not any more so than what we saw from the July FOMC statement. Also, it was more geared toward an academic view of monetary policy over recent years, and not heavily focused on the current outlook. Elsewhere, WTI crude slid this morning, trading slightly above $54 a barrel. New Home Sales in July declined to 635k from an upwardly revised prior of 728k vs. 647k consensus.

The curve has bull-steepened with UST 10-Year yield down 3.40 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/19 No Data - - - - - -  
                   
  08/20 No Data - - - - - -  
                   
  08/21 MBA Mortgage Applications 04:00 16 Aug - -0.90% 21.70% -  
                   
  08/21 Existing Home Sales 07:00 Jul 5.40m 5.42m 5.27m 5.29m  
                   
  08/21 Existing Home Sales MoM 07:00 Jul 2.50% 2.50% -1.70% -1.30%  
                   
  08/21 FOMC Meeting Minutes 11:00 31 Jul - - - -  
                   
  08/22 Initial Jobless Claims 05:30 17 Aug 216k 209k 220k 221k  
                   
  08/22 Continuing Claims 05:30 10 Aug 1707k 1674k 1726k 1728k  
                   
  08/22 Bloomberg Consumer Comfort 06:45 18 Aug - 61.50 61.20 -  
                   
  08/22 Markit US Services PMI 06:45 Aug P 52.80 50.90 53.00 -  
                   
  08/22 Markit US Composite PMI 06:45 Aug P - 50.90 52.60 -  
                   
  08/22 Leading Index 07:00 Jul 0.30% 0.50% -0.30% -0.10%  
                   
  08/22 Kansas City Fed ManfActivity 08:00 Aug 1.00 - -1.00 -  
                   
  08/23 New Home Sales 07:00 Jul 647k 635k 646k 728k  
                   
  08/23 New Home Sales MoM 07:00 Jul 0.20% -12.80% 7.00% 20.90%
                   
 
 
 
 
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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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