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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-16.5 (-19.5)  
 
  FN 3.5% Coupon   103-05 (-06.5)  
 
  Support   2.309%  
 
  Resistance   2.213%  
 
 
 
 
Wednesday, September 27, 2017
 
 
Treasuries are modestly lower across the curve this morning from yesterday's close. The UST 10-Year yield is currently at 2.305% after closing at 2.237% prior.

Treasuries sold off overnight and into the open as investors digested Fed Chairwoman Yellen's comments yesterday that bolstered the expectation of a third interest rate hike this year in December. Yellen acknowledged the recent run of weak inflation reports, but stated that even if it continues to stay below their 2.00% target, there could be danger in tightening the monetary policy “too gradually”. The busy week of Fedspeak continues today with Fed Kashkari at 6:15 AM (PT), Fed Bullard at 10:30 AM (PT), Fed Brainard at 11:00 AM (PT), and Fed Rosengren at 4:00 PM (PT).

In economic news, we received the Mortgage Applications for the week ending on September 22nd which fell 0.50% following a 9.70% drop the week prior. Purchase applications rose 2.80% after falling 10.80% the week prior, while refinancing activities dropped 3.50% after falling 8.50% the week prior. We also received the Durable Goods Orders for August, which rose 1.70% following a 6.80% drop prior; Durables Excluding Transportation rose 0.20% as expected. Lastly, we received the Pending Home Sales for August which dropped 2.60% MoM following a 0.80% drop in July. Pending Home Sales YoY is down 3.10%, which came in below an expected drop of 0.50% per consensus.

The curve has bear-steepened with the UST 10-Year up 6.8 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  09/25 Chicago Fed Nat Activity Index 05:30 Aug -0.25 -0.31 -0.01 0.03  
                   
  09/25 Dallas Fed Manf. Activity 07:30 Sep 11.50 21.30 17.00 -  
                   
  09/26 S&P CoreLogic CS 20-City MoM SA 06:00 Jul 0.20% 0.35% 0.11% 0.09%  
                   
  09/26 S&P CoreLogic CS 20-City YoY NSA 06:00 Jul 5.70% 5.81% 5.65% -  
                   
  09/26 New Home Sales 07:00 Aug 585k 560k 571k 580k  
                   
  09/26 New Home Sales MoM 07:00 Aug 2.50% -3.40% -9.40% -5.50%  
                   
  09/26 Richmond Fed Manufact. Index 07:00 Sep 13.00 19.00 14.00 -  
                   
  09/27 MBA Mortgage Applications 04:00 22 Sep - -0.50% -9.70% -  
                   
  09/27 Durable Goods Orders 05:30 Aug P 1.00% 1.70% -6.80% -  
                   
  09/27 Durables Ex Transportation 05:30 Aug P 0.20% 0.20% 0.60% 0.80%  
                   
  09/27 Pending Home Sales MoM 07:00 Aug -0.50% -2.60% -0.80% -  
                   
  09/27 Pending Home Sales NSA YoY 07:00 Aug -0.50% -3.10% -0.50% -  
                   
  09/28 GDP Annualized QoQ 05:30 2Q T 3.00% - 3.00% -  
                   
  09/28 Personal Consumption 05:30 2Q T 3.30% - 3.30% -  
                   
  09/28 GDP Price Index 05:30 2Q T 1.00% - 1.00% -  
                   
  09/28 Core PCE QoQ 05:30 2Q T 0.90% - 0.90% -  
                   
  09/28 Initial Jobless Claims 05:30 23 Sep 270k - 259k -  
                   
  09/28 Continuing Claims 05:30 16 Sep 1993k - 1980k -  
                   
  09/28 Wholesale Inventories MoM 05:30 Aug P 0.40% - 0.60% -  
                   
  09/28 Bloomberg Consumer Comfort 06:45 24 Sep - - 50.60 -  
                   
  09/28 Kansas City Fed Manf. Activity 08:00 Sep 15.00 - 16.00 -  
                   
  09/29 Personal Income 05:30 Aug 0.20% - 0.40% -  
                   
  09/29 Personal Spending 05:30 Aug 0.10% - 0.30% -  
                   
  09/29 PCE Deflator MoM 05:30 Aug 0.30% - 0.10% -  
                   
  09/29 PCE Deflator YoY 05:30 Aug 1.50% - 1.40% -  
                   
  09/29 PCE Core MoM 05:30 Aug 0.20% - 0.10% -  
                   
  09/29 PCE Core YoY 05:30 Aug 1.40% - 1.40% -  
                   
  09/29 U. of Mich. Sentiment 07:00 Sep F 95.40 - 95.30 -  
                   
 
 
 
 
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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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