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Market Commentary


 
Today's Coupons
 
  10-Year Notes   98-23.5 (+02.5)  
 
  FN 3.5% Coupon   102-16 (00)  
 
  Support   2.431%  
 
  Resistance   2.304%  
 
 
 
 
Wednesday, December 13, 2017
 
 
Treasuries are higher across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.384% after closing at 2.402% during the prior session.

Month-over-month CPI for November rose by 0.40%, in line with market expectations and above its previous 0.10% mark; while year-over-year CPI for November rose by 2.20%, also in line with market expectations and above its previous 2.00% during the prior period. Further, month-over-month CPI Less Food and Energy registered a 0.10% change in November, falling below estimates of 0.20% and dropping from its previous 0.20% mark; while year-over-year CPI Less Food and Energy registered a 1.70% change in November, falling below estimates of 1.80% and dropping from its previous 1.80% mark. Finally, MBA Mortgage Applications came in at -2.30% for the week ended December 8, falling below its 4.70% mark for the previous week. The FOMC will announce today if short-term interest rates will rise in order to keep inflation in check or if economic growth is still moderate enough to maintain rates at current levels.

In Washington, the Republican establishment encountered strong headwinds last night as the democratic candidate in Alabama won a Senate seat for the conservative state. The upset narrows the Republican Senate majority to a single vote ahead of important fiscal measures in early 2018 and brings into question the ability of President Trump to advance his agenda coming into midterm elections next year. 

The curve has bull-flattened with the UST 10-Year yield down 1.8 bps from prior closing.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  12/11 JOLTS Job Openings 07:00 Oct 6135 5996 6093 6177  
                   
  12/12 NFIB Small Business Optimism 03:00 Nov 104.00 107.50 103.80 -  
                   
  12/12 PPI Final Demand MoM 05:30 Nov 0.30% 0.40% 0.40% -  
                   
  12/12 PPI Final Demand YoY 05:30 Nov 2.90% 3.10% 2.80% -  
                   
  12/12 Monthly Budget Statement 11:00 Nov -$134.50 b -$138.50 b -$136.70 b -  
                   
  12/13 MBA Mortgage Applications 04:00 8 Dec - -2.30% 4.70% -  
                   
  12/13 CPI MoM 05:30 Nov 0.40% 0.40% 0.10% -  
                   
  12/13 CPI YoY 05:30 Nov 2.20% 2.20% 2.00% -  
                   
  12/13 FOMC Rate Decision (Upper Bound) 11:00 13 Dec 1.50% - 1.25% -  
                   
  12/13 FOMC Rate Decision (Lower Bound) 11:00 13 Dec 1.25% - 1.00% -  
                   
  12/14 Initial Jobless Claims 05:30 9 Dec 236k - 236k -  
                   
  12/14 Continuing Claims 05:30 2 Dec 1900k - 1908k -  
                   
  12/14 Import Price Index MoM 05:30 Nov 0.70% - 0.20% -  
                   
  12/14 Import Price Index YoY 05:30 Nov 3.30% - 2.50% -  
                   
  12/14 Export Price Index MoM 05:30 Nov 0.30% - 0.00% -  
                   
  12/14 Retail Sales Advance MoM 05:30 Nov 0.30% - 0.20% -  
                   
  12/14 Export Price Index YoY 05:30 Nov - - 2.70% -  
                   
  12/14 Bloomberg Consumer Comfort 06:45 10 Dec - - 52.30 -  
                   
  12/14 Markit US Manufacturing PMI 06:45 Dec P 54.00 - 53.90 -  
                   
  12/14 Markit US Services PMI 06:45 Dec P 55.00 - 54.50 -  
                   
  12/14 Markit US Composite PMI 06:45 Dec P - - 54.50 -  
                   
  12/14 Business Inventories 07:00 Oct -0.10% - 0.00% -  
                   
  12/15 Empire Manufacturing 05:30 Dec 18.70 - 19.40 -  
                   
  12/15 Industrial Production MoM 06:15 Nov 0.30% - 0.90% -  
                   
  12/15 Capacity Utilization 06:15 Nov 77.20% - 77.00% -  
                   
 
 
 
 
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  This information is provided solely for informational use and is not intended as trading or investment advice 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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