Back to top

Market Commentary

Home
Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-24.5 (-19.5)  
 
  FN 3.5% Coupon   102-22.5 (-03)  
 
  Support   2.914%  
 
  Resistance   1.716%  
 
 
 
 
  Wednesday, December 4, 2019
 
 

Treasury Yields Increase Due to Renewed Trade Optimism

 
 
Market opened today’s session with treasuries lower across all maturities. The 10-Year Treasury yield is currently at 1.7431, 2.74 bps increased from prior closing of 1.7157.

Stocks showed strong gains this morning after reports that the US and China would have a finalized interim trade deal, before tariffs are set to rise on December 15th. The renewed optimism followed a House vote to sanction Chinese officials for alleged human-rights violations in the Xinjiang region. The Stoxx Europe 600 Index climbed 0.9% this morning. The US Treasury will offer $40 billion at its weekly auction of four-week bills, a decrease of $5 billion from the last offering. The US Treasury will also offer $35 billion at its weekly auction of eight-week bills. The yield on 10-year Treasuries gained three basis points to 1.74%. The yield on 2-year Treasuries increased one basis point to 1.55%. Germanys 10-year yield rose one basis point to -0.33%. Britains 10-year yield jumped five basis points to 0.719%. Japans 10-year yield slipped two basis points to -0.038%. West Texas Intermediate crude oil climbed 1.7% to $57.04 a barrel. Gold showed little change at $1,477.98 an ounce.

According to the Mortgage Bankers Association, mortgage applications to purchase a home showed an increase of about 1% in the last week; however were still 24% lower than a year ago. Meanwhile, applications to refinance a home were down approximately 16% for the week, but still 61% higher from this time last year. The Organization of the Petroleum Exporting Countries will be meeting tomorrow in Vienna to discuss output cuts. US crude oil inventories declined unexpectedly last week. The American Petroleum Institute reported a drop of 3.7 million barrels, which is double the 1.7 million barrels that was projected. According to a report published by ADP, private payrolls were expected to increase by 135,000 but only managed to increase by 67,000. Goods-producing industries saw a loss of 18,000 jobs. Trade, transportation, and utilities also experienced a loss of about 15,000 jobs.

The curve has bear-steepened with the UST 10-Year yield up 2.74 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 - -9.20% 1.50% -  
                   
  12/04 ADP Employment Change 05:15 Nov 135K 67K 125K 121K  
                   
  12/04 Markit US Services PMI 06:45 Nov F 51.60 51.60 51.60 -  
                   
  12/04 Markit US Composite PMI 06:45 Nov F - 52.00 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