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Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-20.5 (+07.5)  
 
  FN 2.5% Coupon   104-25.5 (-00.5)  
 
  Support   0.787%  
 
  Resistance   0.614%  
 
 
 
 
  Thursday, December 03, 2020
 
 

Treasury Yields Fall as Jobless Claims Report Better Than Expected

 
 
Market opened today's session with treasuries higher across all maturities. 10-Year Treasury yield is at 0.9244, 1.16 bps decreased from prior closing of 0.9360.
US stocks opened higher this morning on the back of fiscal stimulus hopes. The S&P 500 advanced to a new record high, with Boeing Co. rising on news it secured an order for its 737 Max jet from Ryanair Holdings Plc. At a congressional level, House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer have endorsed a scaled back proposal for a $908 billion stimulus package. Elsewhere, OPEC+ neared a deal to gradually ease output cuts in February. WTI crude fell by 0.2% as Gold rose by 0.1% to $1,832.65 an ounce. On the economic front, Initial Jobless Claims fell more than expected after reporting at 712K for the week ending Nov 28. Additionally, Continuing Claims also dropped by 569K for week end Nov 21. Notably, the reported numbers may not accurately represent the number of unique individuals claiming benefits as states face challenges with backlogs, resulting in the overstatement or understatement of actual claims. Regardless, claims continue to be well above pre-pandemic levels, with headwinds presented by rising COVID cases and tightening business restrictions. Reporting tomorrow is the Unemployment Rate, Trade Balance, and Durable Goods Orders, with all three expected at 6.80%, -$64.80bb, and 1.30%, respectively.
The curve has bull-flattened with UST 10-Year yield down 1.16 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  11/30 Dallas Fed Manf. Activity 07:30 Nov 14.30 12.00 19.80 -  
                   
  12/01 ISM Prices Paid 07:00 Nov 65.00 65.40 65.50 -  
                   
  12/01 Construction Spending MoM 07:00 Oct 0.80% 1.30% 0.30% -0.50%  
                   
  12/02 MBA Mortgage Applications 04:00 27 Nov - -0.60% 3.90% -  
                   
  12/02 ADP Employment Change 05:15 Nov 440k 307k 365k 404k  
                   
  12/03 Initial Jobless Claims 05:30 28 Nov 775k 712k 778k 787k  
                   
  12/03 Continuing Claims 05:30 21 Nov 5800k 5520k 6071k 6089k  
                   
  12/03 Bloomberg Consumer Comfort 06:45 29 Nov - 49.30 49.60 -  
                   
  12/03 Markit US Services PMI 06:45 Nov F 57.50 58.40 57.70 -  
                   
  12/03 Markit US Composite PMI 06:45 Nov F - 58.60 57.90 -  
                   
  12/04 Change in Nonfarm Payrolls 05:30 Nov 475k - 638k -  
                   
  12/04 Average Hourly Earnings MoM 05:30 Nov 0.10% - 0.10% -  
                   
  12/04 Average Hourly Earnings YoY 05:30 Nov 4.20% - 4.50% -  
                   
  12/04 Factory Orders 07:00 Oct 0.80% - 1.10% -  
                   
  12/04 Durable Goods Orders 07:00 Oct F 1.30% - 1.30% -  
                   
  12/04 Durables Ex Transportation 07:00 Oct F 1.30% - 1.30% -
                   
 
 
 
 
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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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