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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-24 (-01.5)  
 
  FN 3.5% Coupon   99-04.5 (-01)  
 
  Support   3.111%  
 
  Resistance   2.810%  
 
 
 
 
Wednesday, September 05, 2018
 
 
Treasuries are slightly lower across the curve this morning from yesterday's close. The UST 10-Year yield is currently at 2.912% after closing at 2.899% prior.

Treasuries inched higher overnight sparked by the growing concerns for emerging markets currencies led by South Africa's rand. The dollar strengthened for a fifth straight session, while U.S. stock futures fell with commodities. Treasuries have moved lower since the start of today's session on news that the British and German governments may be easing the path for the U.K. to strike a Brexit deal with the European Union. On the economic calendar, reports showed that the July Trade Deficit widened the most since 2015. The Trade Balance jumped from a revised $45.70 Billion deficit in June to $50.10 Billion in July with new record deficits for China and the European Union. The bilateral deficit with China rose $3.35 Billion to $36.83 Billion in July as imports increased by 5.60% and exports fell 7.70%, while the bilateral deficit with the EU increased by $5.87 Billion as imports rose 2.50% and exports dropped 15.70%.

We also received the MBA Mortgage Applications for the week ended August 31 which fell 0.10% in activities following a 1.70% drop the week prior. Purchase applications showed a slight increase of 0.60% after dropping 0.90% the week prior, while refinancing activities fell 1.40% after dropping 3.00% the week prior. There are a couple Fed speakers on deck today including St. Louis Fed President Bullard and Minneapolis Fed President Kashkari. This week's Fed speakers will also feature New York Fed President Williams, Boston Fed President Rosengren, Cleveland Fed President Mester, and Dallas Fed President Kaplan.

The curve has bear-steepened with the UST 10-Year yield up 1.3 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 - -0.10% -1.70% -  
                   
  09/05 Trade Balance 05:30 Jul -$50.20b -$50.10b -$46.30b -$45.70b  
                   
  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 2.90% - 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% -  
                   
 
 
 
 
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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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