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Market Commentary


 

 
Today's Coupons
 
  10-Year Notes   99-06.5 (-16.5)  
 
  FN 2.5% Coupon   104-29 (-04)  
 
  Support   1.942%  
 
  Resistance   0.505%  
 
 
 
 
  Tuesday, August 25, 2020
 
 

Treasury Yields Rise as Phase-One Deal Commitments are Reaffirmed

 
 
Market opened today’s session with treasuries edging lower across all maturities. 10-Year Treasury yield is at 0.7030, 4.88 bps increased from prior closing of 0.6542.

US stocks opened higher this morning as progress continued to be made on the US-China phase-one deal. Regardless of discrepancies over issues such as tech security and Hong Kong, both countries continue to reaffirm their commitment to upholding the trade deal. In other news, oil edged higher as traders continue to watch Tropical Storm Laura which is expected to strengthen into a hurricane before making landfall later this week. US gasoline futures rose to the highest level since March as concerns arise regarding possible fuel shortages. In regards to the coronavirus, investors continue to focus on vaccine progress as global economies reopen amidst fresh outbreaks of the virus. Moderna Inc. stated it is nearing a deal to supply at least 80 million vaccine doses to the European Union. Elsewhere, traders continue awaiting Federal Reserve Chair Jerome Powell's scheduled speech on Thursday regarding the Fed's monetary policy framework review, focusing on a new inflation strategy. Gold traded below $1,950 an ounce. On the economic front, the Conference Board of Consumer Confidence failed to beat expectations after reporting at 84.80. This marks the lowest value reported since 2014 as the coronavirus pandemic takes a toll on millions of unemployed Americans. This comes as the economy continues to grapple with high unemployment and uncertainty of future federal stimulus, with a new version of jobless aid just starting to reach Americans. In other economic news, New Home Sales for the month of July beat expectations after reporting at 901,000. The surge in home buying has reached the highest level since December 2006 as record low mortgage rates helped fuel a suburban construction boom. Reporting tomorrow are MBA Mortgage Applications and Durable Good Orders, with Durable Good Orders forecasted  at 4.50%.

The curve has bear-steepened with UST 10-Year yield up 4.88 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/24 Chicago Fed Nat Activity Index 05:30 Jul 3.70 1.18 4.11 5.33  
                   
  08/25 FHFA House Price Index MoM 06:00 Jun 0.30% 0.90% -0.30% -0.20%  
                   
  08/25 S&P CoreLogic CS 20-City MoM SA 06:00 Jun 0.10% 0.00% 0.04% -0.03%  
                   
  08/25 S&P CoreLogic CS 20-City YoY NSA 06:00 Jun 3.60% 3.46% 3.69% 3.61%  
                   
  08/25 Conf. Board Consumer Confidence 07:00 Aug 93.00 84.80 92.60 91.70  
                   
  08/26 Durable Goods Orders 05:30 Jul P 4.50% - 7.60% -  
                   
  08/26 Durables Ex Transportation 05:30 Jul P 1.90% - 3.60% -  
                   
  08/27 GDP Annualized QoQ 05:30 2Q S -32.50% - -32.90% -  
                   
  08/27 Personal Consumption 05:30 2Q S -34.60% - -34.60% -  
                   
  08/27 GDP Price Index 05:30 2Q S -1.80% - -1.80% -  
                   
  08/27 Core PCE QoQ 05:30 2Q S -1.10% - -1.10% -  
                   
  08/27 Initial Jobless Claims 05:30 22 Aug 1000k - 1106k -  
                   
  08/27 Continuing Claims 05:30 15 Aug 14400k - 14844k -  
                   
  08/27 Bloomberg Consumer Comfort 06:45 23 Aug - - 43.50 -  
                   
  08/28 Personal Income 05:30 Jul -0.40% - -1.10% -  
                   
  08/28 Personal Spending 05:30 Jul 1.50% - 5.60% -  
                   
  08/28 PCE Deflator MoM 05:30 Jul 0.40% - 0.40% -  
                   
  08/28 PCE Deflator YoY 05:30 Jul 1.00% - 0.80% -  
                   
  08/28 U. of Mich. Sentiment 07:00 Aug F 72.80 - 72.80 -
                   
 
 
 
 
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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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