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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-21 (-08)  
 
  FN 3.5% Coupon   102-13.5 (-04)  
 
  Support   3.237%  
 
  Resistance   1.457%  
 
 
 
 
Wednesday, September 25, 2019
 
 
Treasury Yields Increase After Impeachment Allegations
 
 
Market opened today’s session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.6593, 1.37 bps increased from prior closing of 1.6456.

Yesterday, House Speaker Nancy Pelosi announced she would launch a formal impeachment inquiry against Trump after Trump allegedly pressured the Ukrainian President to investigate the former Vice President’s family. Details of the call are still unknown to the public however, Trump admitted he brought up Biden on the call and stated he would release a transcript of it. In anticipation of this impeachment inquiry, the S&P 500 and Nasdaq Composite posted their biggest one-day declines in a month and the Dow Jones dropped 142 points. This morning stock futures have seemed to recover from yesterday’s unexpected fall. The Dow Jones futures suggested a gain of more than 20 points at the open. S&P 500 futures also pointed to a small gain while the Nasdaq futures indicated a flat open. Stocks declined in Europe and Asia as investors weighed the impeachment allegations against the possibility of reduced trade tensions; the Stoxx Europe 600 Index headed for its largest drop in six weeks.The yield on 10-Year Treasuries increased one basis point to 1.65% while the yield on 2-Year Treasuries dropped one basis point to 1.62%. The US Treasury will offer $41 billion at its 5-Year notes auction, the same amount as the last offering, as well as $18 billion in 2-Year floating rate notes. West Texas Intermediate crude oil sank 1.70% to $56.30 a barrel. Gold decreased 0.30% to $1,527.11 an ounce.

Single family homes sales fell 12.80% to a 635,000 annualized pace, while the June sales reported 728,000. The median sales price also decreased 4.50%, from the previous year, to $312,000. Applications to refinance a home loan fell 15% for the week, but were still reported 104% higher than a year ago. Mortgage applications to purchase a home fell 3% for the week, however were 9% higher than a year ago. Purchases of new homes decreased in the Midwest, South, and West, while rising 50% to 39,000 in the Northeast. A report released by the United Nations found that surface temperatures and sea levels for the world’s oceans are rising at an accelerated rate. Melting ice sheets in Greenland and the Antarctic have increased the frequency of disastrous sea level events, such as flooding and tropical cyclones. The Intergovernmental Panel on Climate Change has reported that marine heatwaves have doubled in frequency every year since 1993. The warming oceans has caused a drop in fish populations, in conjunction with the impact of over-fishing, there has been a significant reduction in fishery catch potential.

The curve has bear-steepened with UST 10-Year yield up 1.37 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  09/23 Chicago Fed Nat Activity Index 05:30 Aug -0.03 0.10 -0.36 -0.41  
                   
  09/23 Markit US Manufacturing PMI 06:45 Sep P 50.40 51.00 50.30 -  
                   
  09/23 Markit US Services PMI 06:45 Sep P 51.40 50.90 50.70 -  
                   
  09/23 Markit US Composite PMI 06:45 Sep P - 51.00 50.70 -  
                   
  09/24 FHFA House Price Index MoM 06:00 Jul 0.30% 0.40% 0.20% -  
                   
  09/24 S&P CoreLogic CS 20-City MoM SA 06:00 Jul 0.10% 0.02% 0.04% 0.06%  
                   
  09/24 S&P CoreLogic CS 20-City YoY NSA 06:00 Jul 2.10% 2.00% 2.13% 2.16%  
                   
  09/24 Richmond Fed Manufact. Index 07:00 Sep 1.00 -9.00 1.00 -  
                   
  09/25 MBA Mortgage Applications 04:00 20 Sep - -10.10% -0.10% -  
                   
  09/25 New Home Sales 07:00 Aug 659k 713k 635k 666k  
                   
  09/25 New Home Sales MoM 07:00 Aug 3.80% 7.10% -12.80% -8.60%  
                   
  09/26 GDP Annualized QoQ 05:30 2Q T 2.00% - 2.00% -  
                   
  09/26 Personal Consumption 05:30 2Q T 4.70% - 4.70% -  
                   
  09/26 GDP Price Index 05:30 2Q T 2.40% - 2.40% -  
                   
  09/26 Core PCE QoQ 05:30 2Q T 1.70% - 1.70% -  
                   
  09/26 Wholesale Inventories MoM 05:30 Aug P 0.10% - 0.20% -  
                   
  09/26 Initial Jobless Claims 05:30 21 Sep 212k - 208k -  
                   
  09/26 Continuing Claims 05:30 14 Sep 1666k - 1661k -  
                   
  09/26 Bloomberg Consumer Comfort 06:45 22 Sep - - 62.70 -  
                   
  09/26 Pending Home Sales MoM 07:00 Aug 1.00% - -2.50% -  
                   
  09/26 Pending Home Sales NSA YoY 07:00 Aug 1.30% - 1.70% -  
                   
  09/27 Personal Income 05:30 Aug 0.40% - 0.10% -  
                   
  09/27 Durable Goods Orders 05:30 Aug P -1.20% - 2.00% -  
                   
  09/27 Personal Spending 05:30 Aug 0.30% - 0.60% -  
                   
  09/27 Durables Ex Transportation 05:30 Aug P 0.20% - -0.40% -  
                   
  09/27 PCE Deflator MoM 05:30 Aug 0.10% - 0.20% -  
                   
  09/27 PCE Deflator YoY 05:30 Aug 1.40% - 1.40% -  
                   
  09/27 U. of Mich. Sentiment 07:00 Sep F 92.10 - 92.00 -
                   
 
 
 
 
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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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