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Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-05 (-12.5)  
 
  FN 3.5% Coupon   102-27.5 (-05.5)  
 
  Support   2.397%  
 
  Resistance   2.035%  
 
 
 
 
Wednesday, October 18, 2017
 
 
Treasuries are modestly lower across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.348% after closing at 2.301% prior.

Treasury yields inched higher overnight as the probability of another rate hike from U.S. policy makers increased to roughly 80 percent from 72 percent last Friday. This morning we received the MBA Mortgage Applications for the week ending on October 13th which rose for the first time in over a month, up 3.60% in activities after falling 2.10% in the week prior. Purchase applications rose 4.20% after dropping 0.10% the week prior, while refinancing activities increased 3.00% after falling 4.20% the week prior.

We also received the Housing Starts for the month of September which fell 56k to 1127k from an upwardly revised 1183k in August. Housing Starts fell 4.70% MoM following a revised 0.20% drop the month prior. Building Permits for September fell 57k to 1215k from a downwardly revised 1272k in August. Building Permits dropped 4.50% MoM following a revised 3.40% gain the month prior. Later today at 11:00 AM (PT), the latest U.S. Federal Reserve Beige Book will be released in anticipation of its November 1st FOMC Meeting.

The curve has bear-steepened with the UST 10-Year up 4.7 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  10/16 Empire Manufacturing 05:30 Oct 20.40 30.20 24.40 -  
                   
  10/17 Import Price Index MoM 05:30 Sep 0.60% 0.70% 0.60% -  
                   
  10/17 Import Price Index YoY 05:30 Sep 2.60% 2.70% 2.10% -  
                   
  10/17 Export Price Index MoM 05:30 Sep 0.50% 0.80% 0.60% 0.70%  
                   
  10/17 Export Price Index YoY 05:30 Sep - 2.90% 2.30% 2.40%  
                   
  10/17 Industrial Production MoM 06:15 Sep 0.30% 0.30% -0.90% -0.70%  
                   
  10/17 Capacity Utilization 06:15 Sep 76.20% 76.00% 76.10% 75.80%  
                   
  10/17 NAHB Housing Market Index 07:00 Oct 64.00 68.00 64.00 -  
                   
  10/17 Total Net TIC Flows 13:00 Aug - $125.00b -$7.30b -  
                   
  10/17 Net Long-term TIC Flows 13:00 Aug - $67.20b $1.30b $1.20b  
                   
  10/18 MBA Mortgage Applications 04:00 13 Oct - 3.60% -2.10% -  
                   
  10/18 Housing Starts 05:30 Sep 1175k 1127k 1180k 1183k  
                   
  10/18 Housing Starts MoM 05:30 Sep -0.40% -4.70% -0.80% -0.20%  
                   
  10/18 Building Permits 05:30 Sep 1245k 1215k 1300k 1272k  
                   
  10/18 Building Permits MoM 05:30 Sep -2.10% -4.50% 5.70% 3.40%  
                   
  10/18 U.S. Federal Reserve Releases Beige Book 11:00 - - - - -  
                   
  10/19 Initial Jobless Claims 05:30 14 Oct 240k - 243k -  
                   
  10/19 Philadelphia Fed Business Outlook 05:30 Oct 22.00 - 23.80 -  
                   
  10/19 Continuing Claims 05:30 7 Oct 1890k - 1889k -  
                   
  10/19 Bloomberg Consumer Comfort 06:45 15 Oct - - 49.50 -  
                   
  10/19 Leading Index 07:00 Sep 0.10% - 0.40% -  
                   
  10/20 Existing Home Sales 07:00 Sep 5.30m - 5.35m -  
                   
  10/20 Existing Home Sales MoM 07:00 Sep -0.90% - -1.70% -  
                   
 
 
 
 
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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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