Back to top

Market Commentary

Home
Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-07 (-12)  
 
  FN 3.5% Coupon   102-20.5 (+01)  
 
  Support   2.913%  
 
  Resistance   1.716%  
 
 
 
 
  Friday, December 6, 2019
 
 

Treasury Yields Increase - Jobs Growth Data Exceeds Expectations

 
 
Market opened today’s session with treasuries lower across all maturities. The 10-Year Treasury yield is currently at 1.8294, 1.91 bps increased from prior closing of 1.8103.

US stocks showed steady gains this morning after the jobs growth data was released. Nonfarm payrolls jumped by 266,000 in November, which exceeded the predicted 180,000. As a result, the Dow Jones advanced 0.8% at the open. The S&P 500 and Nasdaq Composite traded 0.6% and 0.8% higher, respectively. The US and China continue to send mixed signals on the progress of a finalized trade deal. China has asked the US to remove all remaining tariffs before theyll agree to trade terms, and the US has stated it could possibly wait until after the 2020 presidential election to finalize an agreement. In an attempt to ease tensions, China has waived import tariffs on some American pork and soybean shipments. The two countries have nine days to come to an agreement before the US proceeds with tariffs on $156 billion worth of Chinese goods. The US Treasury will auction $42 billion in three-month bills, and $36 billion in six-month bills on Monday, December 9th. The yield on 10-year Treasuries climbed five basis points to 1.86%. Germanys 10-year yield increased two basis points to -0.28%. Britains 10-year yield advanced one basis point to 0.784%. West Texas intermediate crude oil slipped 0.9% to $57.93 a barrel. Gold declined 0.8% to $1,470.80 an ounce.

As nonfarm payrolls exceeded analysts expectations, the unemployment rate also dropped slightly to 3.50%, from 3.60%; the lowest jobless rate since 1969. According to the Labor Department, manufacturing employment advanced 54,000, due in part to the end of the General Motors strike which increased employment by 41,300. Yesterday, House Speaker Nancy Pelosi instructed House committees to proceed with articles of impeachment. Judiciary Committee Chairman, Jerrold Nadler, announced that a hearing will be held on Monday to review the evidence collected during the impeachment inquiry to determine if Trump should be removed from office. Trump is accused of withholding $400 million in congressionally authorized military assistance to Ukraine in exchange for Ukraine opening investigations against Trumps political rivals.

The curve has bear-steepened with the UST 10-Year yield up 1.91 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 203K 213K -  
                   
  12/05 Continuing Claims 05:30 23 Nov 1660K 1693K 1640K 1642K  
                   
  12/05 Trade Balance 05:30 Oct -$48.50b -$47.20b -$52.50b -$51.10b  
                   
  12/05 Bloomberg Consumer Comfort 06:45 1 Dec - 61.70 60.50 -  
                   
  12/05 Factory Orders 07:00 Oct 0.30% 0.30% -0.60% -0.80%  
                   
  12/05 Durable Goods Orders 07:00 Oct F 0.60% 0.50% 0.60% -  
                   
  12/05 Durables Ex Transportation 07:00 Oct F 0.60% 0.50% 0.60% -  
                   
  12/06 Change in Nonfarm Payrolls 05:30 Nov 180K 266K 128K 156K  
                   
  12/06 Average Hourly Earnings MoM 05:30 Nov 0.30% 0.20% 0.20% 0.40%  
                   
  12/06 Average Hourly Earnings YoY 05:30 Nov 3.00% 3.10% 3.00% 3.20%  
                   
  12/06 Wholesale Inventories MoM 07:00 Oct F 0.20% 0.10% 0.20% -  
                   
  12/06 Wholesale Trade Sales MoM 07:00 Oct - -0.70% 0.00% -0.10%  
                   
  12/06 U. of Mich. Sentiment 07:00 Dec P 97.00 99.20 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