Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-25 (-11)  
 
  FN 3.5% Coupon   99-07.5 (-05.5)  
 
  Support   3.111%  
 
  Resistance   2.810%  
 
 
 
 
Tuesday, September 04, 2018
 
 
Treasuries are lower across the curve this morning from Friday's close. The UST 10-Year yield is currently at 2.896% after closing at 2.861% prior.

Treasuries turned lower overnight and into the open as investors continue to grapple with the ongoing trade tensions and more geopolitical concerns. The U.S. and Canada were unable to come to an agreement over a revision to the Nafta accord last Friday. Moreover, President Trump may announce an imposition of an additional $200 Billion tariffs on Chinese goods as early as Thursday. Elsewhere, U.S. stocks fell with emerging markets while turmoil in currencies extended from Turkey and Argentina to South Africa as the country entered a recession for the first time since 2009. Our short economic calendar week kicked off with the final reading of the August Markit US Manufacturing PMI which came in slightly higher than expected at 54.70 versus 54.50 per consensus.

We also received the July Construction Spending index which rose 0.10% MoM following a revised 0.80% drop in June. The August ISM Manufacturing print rose to 61.30 from 58.10 prior, while the ISM Prices Paid print lowered to 72.10 from 73.20 prior. The remainder of this week's calendar will include Wednesday's weekly MBA Mortgage Applications report and the July Trade Balance. On Thursday, we will receive the August ADP Employment Change, the August Markit US Services and Composite PMI prints, and the July Factory and Durable Goods Orders. Then on Friday, we will receive the August employment reports which will include Nonfarm Payrolls, Unemployment Rate, and the Average Hourly Earnings. Later today at 10:00 AM (PT), U.S. will sell 4-Week Bills.

The curve has bear-steepened with the UST 10-Year yield up 3.5 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  09/03 No Data - - - - - -  
                   
  09/04 Markit US Manufacturing PMI 06:45 Aug F 54.50 54.70 54.50 -  
                   
  09/04 Construction Spending MoM 07:00 Jul 0.40% 0.10% -1.10% -0.80%  
                   
  09/04 ISM Manufacturing 07:00 Aug 57.60 61.30 58.10 -  
                   
  09/04 ISM Prices Paid 07:00 Aug 69.50 72.10 73.20 -  
                   
  09/05 MBA Mortgage Applications 04:00 31 Aug - - -1.70% -  
                   
  09/05 Trade Balance 05:30 Jul -$50.20b - -$46.30b -  
                   
  09/06 Challenger Job Cuts YoY 04:30 Aug - - -4.20% -  
                   
  09/06 ADP Employment Change 05:15 Aug 200k - 219k -  
                   
  09/06 Nonfarm Productivity 05:30 2Q F 3.00% - 2.90% -  
                   
  09/06 Unit Labor Costs 05:30 2Q F -0.90% - -0.90% -  
                   
  09/06 Initial Jobless Claims 05:30 1 Sep 213k - 213k -  
                   
  09/06 Continuing Claims 05:30 25 Aug 1720k - 1708k -  
                   
  09/06 Bloomberg Consumer Comfort 06:45 2 Sep - - 58.30 -  
                   
  09/06 Markit US Services PMI 06:45 Aug F 55.20 - 55.20 -  
                   
  09/06 Markit US Composite PMI 06:45 Aug F - - 55.00 -  
                   
  09/06 Factory Orders 07:00 Jul -0.60% - 0.70% -  
                   
  09/06 Durable Goods Orders 07:00 Jul F -1.70% - -1.70% -  
                   
  09/06 Durables Ex Transportation 07:00 Jul F - - 0.20% -  
                   
  09/07 Change in Nonfarm Payrolls 05:30 Aug 195K - 157K -  
                   
  09/07 Unemployment Rate 05:30 Aug 3.80% - 3.90% -  
                   
  09/07 Average Hourly Earnings MoM 05:30 Aug 0.20% - 0.30% -  
                   
  08/30 Average Hourly Earnings YoY 05:30 Aug 2.70% - 2.70% -  
                   
  08/31 Labor Force Participation Rate 05:30 Aug - - 62.90% -  
                   
 
 
 
 
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 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  
 
©2019 Sun West Mortgage Company, Inc. All Rights Reserved