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Today's Coupons
 
  10-Year Notes   98-09.5 (-06)  
 
  FN 2.5% Coupon   104-09.5 (-00.5)  
 
  Support   0.747%  
 
  Resistance   0.599%  
 
 
 
 
  Wednesday, October 21, 2020
 
 

Treasuries and the Dollar Drop Amid Optimism on New Stimulus Legislation

 
 
Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.8108, 2.51 bps increased from prior closing of 0.7857.

Stocks opened higher this morning as speculation on a stimulus package had Treasuries declining alongside the dollar. There is optimism that Congress and the Administration can compromise and reach a deal this week, with stimulus legislation to be financed via a trillion-dollar borrowing.

S&P 500 fluctuated between losses and gains, with Netflix shares falling after failing to reach new subscriber expectations. Meanwhile, social-media companies rose after surpassing earning goals, all the while Tesla wavered before providing financial results later today after market close. An industry report showed that oil reserves were higher than expected, leading oil prices to fall below $41 a barrel. In Europe, stocks fell for the third day in a row. Brexit talks continue between the UK and EU, raising the pound on indications that a deal is imminent.

On the economic front, MBA Mortgage Applications fell 0.60%, for the week ending October 16. This came on the heels of applications dropping 0.70% the week before. Purchases dipped 2.10% after falling 0.30% the prior week. The Initial Jobless Claims report will be released tomorrow.

The curve has bear-steepened with UST 10-Year yield up 2.51 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  10/20 Building Permits 05:30 Sep 1520k 1553k 1470k 1476k  
                   
  10/20 Building Permits MoM 05:30 Sep 3.00% 5.20% -0.90% -0.50%  
                   
  10/20 Housing Starts 05:30 Sep 1465k 1415k 1416k 1388k  
                   
  10/20 Housing Starts MoM 05:30 Sep 3.50% 1.90% -5.10% -6.70%  
                   
  10/21 MBA Mortgage Applications 04:00 16 Oct - -0.60% -0.70% -  
                   
  10/22 Initial Jobless Claims 05:30 17 Oct 870k - 898k -  
                   
  10/22 Continuing Claims 05:30 10 Oct 9625k - 10018k -  
                   
  10/22 Bloomberg Consumer Comfort 06:45 18 Oct - - 48.20 -  
                   
  10/22 Leading Index 07:00 Sep 0.60% - 1.20% -  
                   
  10/23 Markit US Services PMI 06:45 Oct P 54.60 - 54.60 -  
                   
  10/23 Markit US Composite PMI 06:45 Oct P - - 54.30 -
                   
 
 
 
 
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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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