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Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-06+ (-00.5)  
 
  FN 2.5% Coupon   105-10.5 (+01.5)  
 
  Support   1.942%  
 
  Resistance   0.507%  
 
 
 
 
  Tuesday, September 1, 2020
 
 

Treasury Yields Rise as Manufacturing Outperforms

 
 
Market opened today’s session with treasuries edging lower across all maturities. 10-Year Treasury yield is at 0.7212, 1.64 bps increased from prior closing of 0.7048.

US tech stocks opened higher this morning as European shares slumped. The dollar dropped to a two year low on growing conviction that US interest rates will stay suppressed, lifting commodity prices. Early market leader Zoom Video Communications Inc. led a rally after reporting a record surge in revenue thanks to companies shifting towards work-from-home. Elsewhere the euro strengthened to just below $1.20. In Asia equity indexes were mixed on Monday. South Korean shares rose, while Australia's stock benchmark dropped to the lowest since early August. WTI crude rose to $42.91 a barrel, meanwhile gold strengthened by 1.1% to $1,989.34 an ounce. On the economic front, Markit US Manufacturing PMI slightly missed expectations after reporting at 53.10. Notable items within today's report include a rise in new orders for its second consecutive month, showcasing the highest reading since Jan 2019. Additionally the rise in employment when compared to the prior month showcased its highest reading as well since November 2019. ISM Manufacturing beat expectations after reporting at a value of 56.00. Expanding in the month of August at the fastest pace since late 2018 , the report showcases a steady recovery in the manufacturing sector, which accordingly was the first to get hammered at the beginning of the coronavirus shutdown. Elsewhere, Construction Spending failed to best expectations after reporting growth of 0.10% for the month of July. Reporting tomorrow are Durable Good Orders and ADP Employment Change, with expectations set at 11.20% and 1 million respectively.

The curve has bear-steepened with UST 10-Year yield up 1.64 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  08/31 Dallas Fed Manf. Activity 07:30 Aug 0.00 8.00 -3.00 -  
                   
  09/01 ISM Manufacturing 07:00 Aug 54.80 56.00 54.20 -  
                   
  09/01 ISM Prices Paid 07:00 Aug 54.00 59.50 53.20 -  
                   
  09/01 Construction Spending MoM 07:00 Jul 1.00% 0.10% -0.70% -  
                   
  09/02 MBA Mortgage Applications 04:00 28 Aug - - -6.50% -  
                   
  09/02 ADP Employment Change 05:15 Aug 1000k - 167k -  
                   
  09/02 Factory Orders 07:00 Jul 6.10% - 6.20% -  
                   
  09/02 Durable Goods Orders 07:00 Jul F 11.20% - 11.20% -  
                   
  09/02 Durables Ex Transportation 07:00 Jul F 2.40% - 2.40% -  
                   
  09/03 Initial Jobless Claims 05:30 29 Aug 950k - 1006k -  
                   
  09/03 Continuing Claims 05:30 22 Aug 14000k - 14535k -  
                   
  09/03 Trade Balance 05:30 Jul -$58.00b - -$50.70b -  
                   
  09/03 Bloomberg Consumer Comfort 06:45 30 Aug - - 44.30 -  
                   
  09/03 Markit US Services PMI 06:45 Aug F 54.70 - 54.80 -  
                   
  09/03 Markit US Composite PMI 06:45 Aug F - - 54.70 -  
                   
  09/04 Change in Nonfarm Payrolls 05:30 Aug 1370K - 1763K -  
                   
  09/04 Average Hourly Earnings MoM 05:30 Aug 0.00% - 0.20% -  
                   
  09/04 Average Hourly Earnings YoY 05:30 Aug 4.40% - 4.80% -
                   
 
 
 
 
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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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