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Market Commentary


 
Today's Coupons
 
  10-Year Notes   97-15.5 (-05)  
 
  FN 3.5% Coupon   97-13.5 (-01.5)  
 
  Support   3.233%  
 
  Resistance   2.871%  
 
 
 
 
Tuesday, October 16, 2018
 
 
Treasuries are lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 3.170% after closing at 3.157% prior.

Treasuries fell overnight as U.S. stocks rebounded on some positive third-quarter corporate earnings results from Morgan Stanley and Goldman Sachs Group Inc. Healthcare firms also provided stocks a boost as Johnson & Johnson and UnitedHealth Group Inc. earnings results bolstered the Dow Jones. Earnings season continues later today after the close and will include results from Netflix Inc. which will be the first large technology company to report. Elsewhere, geopolitical tensions appeared to have eased with the Italian government agreeing on a budget to meet Monday’s midnight deadline, while Prime Minister Theresa May shed some positivity ahead of an important summit between British and EU officials on Wednesday.

On the economic calendar, we received the September Industrial Production report which increased 0.30% MoM following an unrevised 0.40% gain in August; consensus called for a 0.20% gain in September. Capacity Utilization rate was unchanged MoM at 78.10% in September which was marginally lower than expected as consensus called for the rate to show 78.20%. Moreover, the Manufacturing output gained 0.20% in September to meet expectations, while the August data was revised higher from 0.20% to 0.30%. We also received the NAHB Housing Market Index for October which came in higher than expected at 68 versus 66 per consensus following an unrevised 67 reading prior. Also received, the August JOLTS Job Openings rose 7.136 million in August from an upwardly revised 7.077 million prior. Later today, the August Net TIC Flows and Net Long-term TIC Flows will be available at 1:00 PM (PT).

The curve has bear-flattened with the UST 10-Year yield up 1.3 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  10/15 Retail Sales Advance MoM 05:30 Sep 0.60% 0.10% 0.10% -  
                   
  10/15 Empire Manufacturing 05:30 Oct 20.00 21.10 19.00 -  
                   
  10/15 Business Inventories 07:00 Aug 0.50% 0.50% 0.60% 0.70%  
                   
  10/16 Industrial Production MoM 06:15 Sep 0.20% 0.30% 0.40% -  
                   
  10/16 Capacity Utilization 06:15 Sep 78.20% 78.10% 78.10% -  
                   
  10/16 NAHB Housing Market Index 07:00 Oct 66.00 68.00 67.00 -  
                   
  10/16 JOLTS Job Openings 07:00 Aug 6900 7136 6939 7077  
                   
  10/16 Total Net TIC Flows 13:00 Aug $60.30b - $52.20b -  
                   
  10/16 Net Long-term TIC Flows 13:00 Aug - - $74.80b -  
                   
  10/17 MBA Mortgage Applications 04:00 12 Oct - - -1.70% -  
                   
  10/17 Housing Starts 05:30 Sep 1210k - 1282k -  
                   
  10/17 Housing Starts MoM 05:30 Sep -5.60% - 9.20% -  
                   
  10/17 Building Permits 05:30 Sep 1274k - 1229k 1249k  
                   
  10/17 Building Permits MoM 05:30 Sep 2.00% - -5.70% -4.10%  
                   
  10/17 FOMC Meeting Minutes 11:00 26 Sep - - - -  
                   
  10/18 Philadelphia Fed Business Outlook 05:30 Oct 20.00 - 22.90 -  
                   
  10/18 Initial Jobless Claims 05:30 13 Oct 210k - 214k -  
                   
  10/18 Continuing Claims 05:30 6 Oct 1665k - 1660k -  
                   
  10/18 Bloomberg Consumer Comfort 06:45 14 Oct - - 59.50 -  
                   
  10/18 Leading Index 07:00 Sep 0.50% - 0.40% -  
                   
  10/19 Existing Home Sales 07:00 Sep 5.29m - 5.34m -  
                   
  10/19 Existing Home Sales MoM 07:00 Sep -0.90% - 0.00% -  
                   
 
 
 
 
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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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