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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-20 (-13)  
 
  FN 3.5% Coupon   102-14.5 (-04.5)  
 
  Support   3.237%  
 
  Resistance   1.457%  
 
 
 
 
Tuesday, September 10, 2019
 
 
Treasury Yields Climb in Response to Subsiding Trade Tensions
 
 
Market opened today’s session with treasuries dropping lower across all maturities. 10-Year Treasury yield is at 1.6627, 1.89 bps increased from prior closing of 1.6438.

After posting its fourth straight day of gains on Monday, the Dow Jones dropped by 27 points (0.10%), S&P 500 traded 0.25% lower, and the Nasdaq 100 lost 0.50%. The S&P 500 tech sector was one of the worst performers on Monday, slipping 0.70%. The yield on 10-Year Treasury rose 1 basis point to 1.65%, a day after it hit its highest levels in about four weeks, while the 2-year Treasury gained 2 basis points to 1.60%. One of the lawsuits sanctioned by China, against the US, was dropped as tensions between the two countries seem to be easing during the upcoming trade negotiations in October. Investors are waiting for the European Central Bank’s policy decisions on lowering rates to stimulate their economies and boost inflation closer to their 2.00% targets. The US Treasury will offer $38 billion at its auction of 3-year notes, the same amount as the last offering. Gold headed for its fourth day of declines, sinking close to $1,490 an ounce.

Oil extended gains to the highest level in almost 6 weeks as Saudi Arabia’s new energy minister expressed his intent to cut production costs ahead of an OPEC meeting later this week. OPEC’s monthly oil market report, which includes demand forecasts and production estimates, is due to be released Wednesday. US Mortgage applications dropped for the 3rd week in a row to 3.10%, from the previously reported 6.20%, as loan refinancing steadily slowed. Refinancing comprised 60.40% of applications last week, with an average loan size of $344,600; the average loan size for a purchase was $320,000. Purchases are up 3.60%, after falling 4.00% in the prior week, while refinances fell 7.00% after falling 7.60% in the prior week.

The curve has bear-steepened with UST 10-Year yield up 1.89 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  09/09 Consumer Credit 12:00 Jul $16.000b - $14.569b -  
                   
  09/10 NFIB Small Business Optimism 03:00 Aug 103.50 103.10 104.70 -  
                   
  09/10 JOLTS Job Openings 07:00 Jul 7331 7217 7348 7248  
                   
  09/11 MBA Mortgage Applications 04:00 6 Sep - - -3.10% -  
                   
  09/11 PPI Final Demand MoM 05:30 Aug 0.00% - 0.20% -  
                   
  09/11 PPI Final Demand YoY 05:30 Aug 1.70% - 1.70% -  
                   
  09/11 Wholesale Trade Sales MoM 07:00 Jul 0.50% - -0.30% -  
                   
  09/11 Wholesale Inventories MoM 07:00 Jul F 0.20% - 0.20% -  
                   
  09/12 CPI MoM 05:30 Aug 0.10% - 0.30% -  
                   
  09/12 CPI YoY 05:30 Aug 1.80% - 1.80% -  
                   
  09/12 Initial Jobless Claims 05:30 7 Sep 215k - 217k -  
                   
  09/12 Continuing Claims 05:30 31 Aug 1675k - 1662k -  
                   
  09/12 Bloomberg Consumer Comfort 06:45 8 Sep - - 63.40 -  
                   
  09/12 Monthly Budget Statement 11:00 Aug -195.00b - -$119.70b -  
                   
  09/13 Import Price Index MoM 05:30 Aug -0.50% - 0.20% -  
                   
  09/13 Import Price Index YoY 05:30 Aug -2.00% - -1.80% -  
                   
  09/13 Export Price Index MoM 07:00 Aug -0.30% - 0.20% -  
                   
  09/13 Export Price Index YoY 05:30 Aug - - -0.90% -  
                   
  09/13 Retail Sales Advance MoM 05:30 Aug 0.20% - 0.70% -  
                   
  09/13 U. of Mich. Sentiment 05:30 Sep P 90.80 - 89.80 -
                   
 
 
 
 
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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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