Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   97-31 (-14.5)  
 
  FN 3.5% Coupon   102-08 (-02.5)  
 
  Support   3.237%  
 
  Resistance   1.529%  
 
 
 
 
Monday, October 28, 2019
 
 
Treasury Yields Increase: US-China Closer to Finalizing Trade Agreement
 
 
Market opened today’s session with treasuries lower across all maturities. The 10-Year Treasury yield is currently at 1.8508, 5.65 bps increased from prior closing of 1.7943.

The S&P 500 hit a record high this morning, breaking its all-time high it set over the summer, due to strong earnings and progress on US-China trade negotiations. Of the 202 S&P 500 companies that have reported, 78.00% have exceeded expectations. The Dow Jones gained 143 points (0.50%). The Nasdaq Composite climbed 0.60%. Improvement on the U.S.-China trade front has also lifted investor sentiment recently. U.S. and Chinese officials said they were “close to finalizing” some parts of a trade agreement. Technology and financials are the best performing sectors month to date, they are up 3.00% and 2.20%, respectively. Microsoft gained 2.60% after securing a $10 billion defense contract. The Federal Reserve is scheduled to meet again on Wednesday to discuss the possibility of lowering interest rates again. US economic growth is forecast to have sowed to 1.60% in the third quarter; GDP data will be released Wednesday. The Euro climbed 0.20% to $1.1101; the British pound was little changed to 86.389 Pence per Euro, while the Japanese Yen was little changed at 108.72 per Dollar. The yield on 10-Year Treasuries advanced four basis points to 1.83%. The yield on 2-Year Treasuries advanced three basis points to 1.65%. Britain’s 10-Year yield decreased one basis point to 0.673%. The US Treasury will auction $45 billion in three-month bills, and $42 billion in six-month bills.

Virgin Galactic becomes the world’s first and only publicly traded commercial human spaceflight company. Virgin Galactic’s spacecraft will be able to carry 6 passengers and 2 pilots to the edge of space. The spaceship is dropped from a jet-powered aircraft and fires a rocket motor, reaching over three times the speed of sound. The spacecraft and its passengers will then float weightless for a few minutes, before gliding back down to land on Earth. On Sunday, the White House announced that the leader of ISIS, Abu Bakr al-Baghdadi, died in an overnight US military operation in Syria. Baghdadi was arrested by occupying American forces in 2004 and was detained at the Abu Ghraib prison before joining Al-Qaeda in Iraq. He has led ISIS since 2010 and was last seen alive in a video in April 2019. The ISIS leader was targeted near Barisha, Syria. American forces used eight helicopters through airspace controlled by Russia and Turkey. No Americans were killed in the raid, but Trump said one of the military dogs was injured.

The curve has bear-steepened with the UST 10-Year yield up 5.65 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  10/28 Chicago Fed Nat Activity Index 05:30 Sep 0.00 -0.45 0.10 0.15  
                   
  10/28 Wholesale Inventories MoM 05:30 Sep P 0.20% -0.30% 0.20% 0.00%  
                   
  10/28 Dallas Fed ManfActivity 07:30 Oct 1.00 - 1.50 -  
                   
  10/29 S&P CoreLogic CS 20-City MoM SA 06:00 Aug -0.10% - 0.02% -  
                   
  10/29 S&P CoreLogic CS 20-City YoY NSA 06:00 Aug 2.10% - 2.00% -  
                   
  10/29 Pending Home Sales MoM 07:00 Sep 0.70% - 1.60% -  
                   
  10/29 Pending Home Sales NSA YoY 07:00 Sep 3.60% - 1.10% -  
                   
  10/30 MBA Mortgage Applications 04:00 25 Oct - - -11.90% -  
                   
  10/30 ADP Employment Change 05:15 Oct 110k - 135k -  
                   
  10/30 GDP Annualized QoQ 05:30 3Q A 1.60% - 2.00% -  
                   
  10/30 Personal Consumption 05:30 3Q A 2.60% - 4.60% -  
                   
  10/30 GDP Price Index 05:30 3Q A 1.90% - 2.40% -  
                   
  10/30 Core PCE QoQ 05:30 3Q A 2.20% - 1.90% -  
                   
  10/30 FOMC Rate Decision (Upper Bound) 11:00 30 Oct 1.75% - 2.00% -  
                   
  10/30 FOMC Rate Decision (Lower Bound) 11:00 30 Oct 1.50% - 1.75% -  
                   
  10/31 Challenger Job Cuts YoY 04:30 Oct - - -24.80% -  
                   
  10/31 Personal Income 05:30 Sep 0.30% - 0.40% -  
                   
  10/31 Personal Spending 05:30 Sep 0.30% - 0.10% -  
                   
  10/31 PCE Deflator MoM 05:30 Sep 0.00% - 0.00% -  
                   
  10/31 PCE Deflator YoY 05:30 Sep 1.40% - 1.40% -  
                   
  10/31 Initial Jobless Claims 05:30 26 Oct 215k - 212k -  
                   
  10/31 Continuing Claims 05:30 19 Oct 1679k - 1682k -  
                   
  10/31 Bloomberg Consumer Comfort 06:45 27 Oct - - 63.40 -  
                   
  11/01 Change in Nonfarm Payrolls 05:30 Oct 85k - 136k -  
                   
  11/01 Unemployment Rate 05:30 Oct 3.60% - 3.50% -  
                   
  11/01 Average Hourly Earnings MoM 05:30 Oct 0.30% - 0.00% -  
                   
  11/01 Average Hourly Earnings YoY 05:30 Oct 3.00% - 2.90% -  
                   
  11/01 Labor Force Participation Rate 05:30 Oct 63.10% - 63.20% -  
                   
  11/01 Markit US Manufacturing PMI 06:45 Oct F 51.50 - 51.50 -  
                   
  11/01 ISM Manufacturing 07:00 Oct 49.00 - 47.80 -  
                   
  11/01 ISM Prices Paid 07:00 Oct 50.00 - 49.70 -  
                   
  11/01 Construction Spending MoM 07:00 Sep 0.20% - 0.10% -
                   
 
 
 
 
Helpful Links
  Visit Us Online   Submit Loan  
  Get Approved   SeeMyLoanStatusTM  
  Download Rate Sheet   Conventional Program Guidelines  
  Price & Lock   Government Program Guidelines  
 
 
   
 
  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.  
 
©2020 Sun West Mortgage Company, Inc. All Rights Reserved