Back to top

Market Commentary

Home
Market Commentary



 
Today's Coupons
 
  10-Year Notes   100-13.5 (+1-06.5)  
 
  FN 3.5% Coupon   102-26 (+07.5)  
 
  Support   2.970%  
 
  Resistance   1.733%  
 
 
 
 
  Tuesday, December 3, 2019
 
 

Treasury Yields Fall: US-China Trade Deal Delayed - US to Sanction France

 
 
Market opened today’s session with treasuries rallying across all maturities. The 10-Year Treasury yield is currently at 1.7311, 8.78 bps decreased from prior closing of 1.8189.

The Dow Jones dropped more than 350 points after Trump announced he may wait until after the 2020 presidential election to finalize a trade deal with China. The S&P 500 and Nasdaq Composite each fell more than 1.2%. In response to a conflict over a digital service tax in France that affects large tech companies including Google, Apple, Facebook, and Amazon, the US has threatened to impose $2.4 billion in tariffs on French goods. The tariffs would affect products such as sparkling wine, cheeses, handbags, and makeup. French Finance Minister, Bruno Le Maire, stated that France and the European Union is prepared to retaliate if the US follows through with the proposed sanctions. US Trade Representative, Robert Lighthizer, stated investigations into similar digital taxes by Austria, Italy, and Turkey are a possibility. The yield on 10-Year Treasuries fell four basis points to 1.78%. Germany's 10-Year yield decreased two basis points to -0.30%. Britain's 10-Year yield slipped less than one basis point to 0.735%. The US Treasury will offer $26 billion at its auction of 52 week bills, a decrease of $2 billion from the last offering.

Trump's remarks regarding a delayed trade deal with China caused oil prices to fall. West Texas Intermediate crude oil decreased 0.9% to $55.61 a barrel, and Brent crude, which is the global benchmark, dropped 44 cents to $60.48 a barrel. Meanwhile, gold increased 0.7% to $1,473.04 an ounce. Boeing has invited industry members, experts, and analysts to its Seattle facility this week in an attempt to gain support for its new and improved 737 Max and hopefully bring the grounded plane back into service. The Federal Aviation Administration says that Boeing's 737 Max is not ready for certification, despite the improvements to the flight control software, and intends to review each and every 737 Max jetliner. The FAA and its administrator, Steve Dickson, reiterate that there is no set timeline to have the planes inspected and certified; public safety remains the FAA's primary concern.

The curve has bull-flattened with the UST 10-Year yield down 8.78 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 1660K - 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 0.60% - 0.60% -  
                   
  12/06 Change in Nonfarm Payrolls 05:30 Nov 190K - 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.  
 
 
© Sun West Mortgage Company, Inc. All Rights Reserved