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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   1.594%  
 
  Support   1.508%  
 
  Resistance   1.276%  
 
  FN 2.5% Coupon   102.422 (-0.141)  
 
 
 
 
     Monday, October 18, 2021
 
 

US  Market in Negative as Inflation Concern Surges

 
 

The Market opened today's session with treasuries lower across all maturities. The 10-year Treasury yield is currently at 1.6195, 4.92 bps higher than prior closing of 1.5703.

U.S. stocks drifted on Monday as surging energy prices cemented worries about inflation and reinforced bets on policy tightening. The S&P 500 slid 0.05%, led by losses in utilities, while the Nasdaq 100 was little changed. Inflation concerns and fears over the growth outlook are putting stocks under pressure just as earnings season ramps up. Overnight the MSCI Asia Pacific Index slipped 0.20% while Japan’s Topix index closed 0.20% lower. In Europe the Stoxx 600 Index had dropped 0.40%. The Treasury yield curve flattened sharply today. The spread is now at its lowest since April 2020, a time when pandemic fears brought the global economy to a near shutdown. Industrial production fell 1.30% in September, far weaker than the consensus estimate for a 0.10% gain. The continued jump in energy and raw material prices is reinforcing bets that major central banks would soon be forced to react to rising inflation. US retail sales rose 0.70% a much stronger than expected in September. Housing starts due on Tuesday have been coming in at a monthly average of 1.60 million units (annualized) year-to-date.

The curve has bear-steepened with the UST 10-Year yield up 4.92 bps.

 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  10/18 Capacity Utilization 06:15 Sep 76.40% 75.20% 76.40% 76.20%  
                   
  10/19 Building Permits MoM 05:30 Sep -2.40% - 6.00% 5.60%  
                   
  10/19 Building Permits 05:30 Sep 1680k - 1728k 1721k  
                   
  10/20 MBA Mortgage Applications 04:00 15-Oct - - 0.20% -  
                   
  10/21 Initial Jobless Claims 05:30 16-Oct 298k - 293k -  
                   
  10/21 Continuing Claims 05:30 09-Oct 2546k - 2593k -  
                   
  10/22 Markit US Manufacturing PMI 06:45 Oct P 60.30 - 60.70 -  
                   
  10/22 Markit US Services PMI 06:45 Oct P 55.20 - 54.90 -  
                   
 
 
 
 
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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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