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Market Commentary


 
Today's Coupons
 
  10-Year Notes   97-18 (-05)  
 
  FN 3.5% Coupon   97-18 (-02)  
 
  Support   3.233%  
 
  Resistance   2.855%  
 
 
 
 
Friday, October 12, 2018
 
 
Treasuries are slightly lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 3.166% after closing at 3.151% prior.

Treasuries lowered overnight as risk-off mode faded amid stabilization in U.S. stocks after back to back days of selling-off. Stocks turned higher after JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kicked off the 3Q corporate earnings season with mostly positive results. Equities also rallied globally overnight as trade tensions between U.S. and China provided some temporary easement with the two countries agreeing to meet in November. Treasuries remain lower this morning, while the dollar has held steadily. Elsewhere, there are several Fed Officials scheduled to speak today including remarks from Chicago Fed President Evans, Atlanta Fed President Bostic, and Fed Vice Chairman Quarles.

On the economic calendar, we received the Import Price Index for September which rose 0.50% MoM following a revised decline of 0.40% prior; consensus was looking for a 0.20% rise. Import Price Index YoY also came in higher than expected at 3.50% versus 3.10% per consensus, while its prior mark was revised up from 3.70% to 3.80%. Import Price excluding petroleum was unchanged at 0.00% following a 0.20% drop prior. Export Price Index was unchanged at 0.00% in September following a revised 0.20% decline in August; its YoY level is now at 2.70% following its revised 3.50% level prior. Lastly, we received the preliminary reading of the October University of Michigan Sentiment which came in below expectations at 99.00 versus 100.50 per consensus.

The curve has bear-steepened with the UST 10-Year yield up 1.5 bps from prior closing.

Have A Wonderful Weekend!
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  10/08 No Data - - - - - -  
                   
  10/09 NFIB Small Business Optimism 03:00 Sep 108.30 107.90 108.80 -  
                   
  10/10 MBA Mortgage Applications 04:00 5 Oct - -1.70% 0.00% -  
                   
  10/10 PPI Final Demand MoM 05:30 Sep 0.20% 0.20% -0.10% -  
                   
  10/10 PPI Final Demand YoY 05:30 Sep 2.70% 2.60% 2.80% -  
                   
  10/10 Wholesale Inventories MoM 07:00 Aug F 0.80% 1.00% 0.80% -  
                   
  10/10 Wholesale Trade Sales MoM 07:00 Aug 0.50% 0.80% 0.00% 0.20%  
                   
  10/11 CPI MoM 05:30 Sep 0.20% 0.10% 0.20% -  
                   
  10/11 CPI YoY 05:30 Sep 2.40% 2.30% 2.70% -  
                   
  10/11 Initial Jobless Claims 05:30 6 Oct 207k 214k 207k -  
                   
  10/11 Continuing Claims 05:30 29 Sep 1660k 1660k 1650k 1656k  
                   
  10/11 Bloomberg Consumer Comfort 06:45 7 Oct - 59.50 61.60 -  
                   
  10/12 Import Price Index MoM 05:30 Sep 0.20% 0.50% -0.60% -0.40%  
                   
  10/12 Import Price Index YoY 05:30 Sep 3.10% 3.50% 3.70% 3.80%  
                   
  10/12 Export Price Index MoM 05:30 Sep 0.20% 0.00% -0.10% -0.20%  
                   
  10/12 Export Price Index YoY 05:30 Sep 2.90% 2.70% 3.60% 3.50%  
                   
  10/12 U. of Mich. Sentiment 07:00 Oct P 100.50 99.00 100.10 -  
                   
 
 
 
 
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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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