Back to top

Market Commentary

Home
Market Commentary


 
Today's Coupons
 
  10-Year Notes   99-10.5 (-14)  
 
  FN 3.5% Coupon   102-18.5 (-02)  
 
  Support   2.970%  
 
  Resistance   1.741%  
 
 
 
 
Monday, December 02, 2019
 
 
Treasury Yields Increase - Impeachment Inquiry Continues Wednesday
 
 
Market opened today’s session with treasuries lower across all maturities. The 10-Year Treasury yield is currently at 1.8328, 5.7 bps increased from prior closing of 1.7758.

Stocks decreased this morning due to continued uncertainties surrounding trade negotiations and less than favorable manufacturing data. The Dow Jones fell 150 points this morning, about 0.5%. The S&P 500 and the Nasdaq Composite declined 0.6% and 1%, respectively. China is still insisting that the US cancel any remaining tariffs before they move forward with the interim trade deal. The US and China were supposed to have a signed interim trade deal last month, but China’s request has stalled any progress; there is no indication of when the US or China will be signing the trade deal. The yield on 10-Year Treasuries advanced six basis points to 1.83%. The yield on 2-year Treasuries advanced one basis point to 1.63%. Germany’s 10-Year yield climbed seven basis points to -0.29%. Britain’s 10-Year yield rose five basis points to 0.744%. Japan’s 10-Year yield jumped three basis points to -0.045%. West Texas Intermediate crude oil advanced 2.20% to $56.39 a barrel. Meanwhile, gold decreased 0.50% to $1,464.70 an ounce.

Trump announced this morning that he plans to reinstate tariffs on steel and aluminum imports from Brazil and Argentina, effective immediately. The Institute for Supply Management Manufacturing data showed an unexpected decline to 48.10 from 48.30, due to corporate investment cutbacks and continued tensions between the US and China. The impeachment inquiry continues as the House Judiciary Committee is scheduled to hold its first hearing on Wednesday at 7:00 AM (PT). House Judiciary Chairman, Jerrold Nadler, issued a letter informing the White House that both Trump and his legal counsel will be authorized to attend the hearings, and will allow Trump’s legal counsel to question the witness panel. The Organization of the Petroleum Exporting Countries, and its allies, are scheduled to meet in Vienna on Thursday to discuss output cuts, which would increase prices.

The curve has bear-steepened with the UST 10-Year yield up 5.7 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  12/02 Markit US Manufacturing PMI 06:45 Nov F 52.20 52.60 52.20 -  
                   
  12/02 ISM Manufacturing 07:00 Nov 49.20 48.10 48.30 -  
                   
  12/02 ISM Prices Paid 07:00 Nov 47.00 46.70 45.50 -  
                   
  12/02 Construction Spending MoM 07:00 Oct 0.40% -0.80% 0.50% -0.30%  
                   
  12/03 No Data - - - - - -  
                   
  12/04 MBA Mortgage Applications 04:00 29 Nov - - 1.50% -  
                   
  12/04 ADP Employment Change 05:15 Nov 140K - 125K -  
                   
  12/04 Markit US Services PMI 06:45 Nov F 51.60 - 51.60 -  
                   
  12/04 Markit US Composite PMI 06:45 Nov F - - 51.90 -  
                   
  12/05 Initial Jobless Claims 05:30 30 Nov 215K - 213K -  
                   
  12/05 Continuing Claims 05:30 23 Nov 1661K - 1640K -  
                   
  12/05 Trade Balance 05:30 Oct -$48.60b - -$52.50b -  
                   
  12/05 Bloomberg Consumer Comfort 06:45 1 Dec - - 60.50 -  
                   
  12/05 Factory Orders 07:00 Oct 0.30% - -0.60% -  
                   
  12/05 Durable Goods Orders 07:00 Oct F 0.60% - 0.60% -  
                   
  12/05 Durables Ex Transportation 07:00 Oct F -0.30% -0.40% -0.30% -  
                   
  12/06 Change in Nonfarm Payrolls 05:30 Nov 188K - 128K -  
                   
  12/06 Average Hourly Earnings MoM 05:30 Nov 0.30% - 0.20% -  
                   
  12/06 Average Hourly Earnings YoY 05:30 Nov 3.00% - 3.00% -  
                   
  12/06 Wholesale Inventories MoM 07:00 Oct F 0.20% - 0.20% -  
                   
  12/06 Wholesale Trade Sales MoM 07:00 Oct - - 0.00% -  
                   
  12/06 U. of Mich. Sentiment 07:00 Dec P 97.00 - 96.80 -
                   
 
 
 
 
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