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Market Commentary



 

Today's Coupons
 
  10-Year Notes   99-18.5 (00)  
 
  FN 2.5% Coupon   104-21.5 (+00.5)  
 
  Support   1.942%  
 
  Resistance   0.619%  
 
 
 
 
  Tuesday, September 22, 2020
 

 

Treasury Yields Rise as Lawmakers Grapple With a Possible Government Shutdown

 

 

Market opened today's session with Treasuries slightly lower across all maturities. 10-Year Treasury yield is at 0.672, 0.66 bp increased from prior closing of 0.666.

US stocks opened higher this morning as investors overlooked wavering prospects of additional economic stimulus. Notable gainers include Amazon.com Inc. and Apple Inc. Tesla Inc. fell following news from Elon Musk that tech from "Battery Day" may not be produced on a large scale for the next two years. On the virus front, European stocks fell following comments from Boris Johnson warning that new limits on socializing will likely be in place for six months. U.S. House Democrats are voting on a stopgap measure that will keep the government funded past September 30. This move comes following Senate Republicans rejection of the original Democrat-sponsored bill as it withheld farm aid. Elsewhere, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will be testifying today on the economic recovery in front of the House Financial Services Committee. WTI crude has gained 0.7% nearing $40 a barrel while Gold remained relatively unchanged at $1,912 an ounce. On the economic front, Existing Home Sales came in line with expectations at 6 million homes sold for the month of August. Near record low rates continue to be a primary catalyst for the continued increase in Existing Home Sales, all the while decreasing inventory along with rising home prices continue to be the main source of caution, particularly if recovery in the labor market falters. Reporting tomorrow are MBA Mortgage Applications and US Manufacturing PMI, with the latter expected at 53.50, a slight increase from the previously reported PMI of 53.10.

The curve has bear-steepened with UST 10-Year yield up 0.66 bp.

 

 

 

 

 

 

 

 

This Week's Events

 

 

  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  

 

09/21

Chicago Fed Nat Activity Index

05:30

Aug

1.19

0.79

1.18

2.54

 

 

 

 

 

 

 

 

 

 

 

 

09/22

Existing Home Sales

07:00

Aug

6.00m

6.00m

5.86m

-

 

 

 

 

 

 

 

 

 

 

 

 

09/22

Existing Home Sales MoM

07:00

Aug

2.40%

2.40%

24.70%

-

 

 

 

 

 

 

 

 

 

 

 

 

09/23

MBA Mortgage Applications

04:00

18 Sep

-

-

-2.50%

-

 

 

 

 

 

 

 

 

 

 

 

 

09/23

FHFA House Price Index MoM

06:00

Jul

0.50%

-

0.90%

-

 

 

 

 

 

 

 

 

 

 

 

 

09/23

Markit US Services PMI

06:45

Sep P

54.50

-

55.00

-

 

 

 

 

 

 

 

 

 

 

 

 

09/23

Markit US Composite PMI

06:45

Sep P

-

-

54.60

-

 

 

 

 

 

 

 

 

 

 

 

 

09/24

Initial Jobless Claims

05:30

19 Sep

840k

-

860k

-

 

 

 

 

 

 

 

 

 

 

 

 

09/24

Continuing Claims

05:30

12 Sep

12350k

-

12628k

-

 

 

 

 

 

 

 

 

 

 

 

 

09/24

Bloomberg Consumer Comfort

06:45

20 Sep

-

-

47.70

-

 

 

 

 

 

 

 

 

 

 

 

 

09/25

Durable Goods Orders

05:30

Aug P

1.20%

-

11.40%

-

 

 

 

 

 

 

 

 

 

 

 

 

09/25

Durables Ex Transportation

05:30

Aug P

1.10%

-

2.60%

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Helpful Links

 

 

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Price & Lock

 

Government Program Guidelines

 

 

 

 

 

 

 

 

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.