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Market Commentary



 
Today's Coupons
 
  10-Year Notes   99-18.5 (-02.5)  
 
  FN 2.5% Coupon   104-29 (-01)  
 
  Support   0.791%  
 
  Resistance   0.615%  
 
 
 
 
  Wednesday, December 16, 2020
 
 

Treasury Yields Rise as Retail Sales Underwhelm

 
 
Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.9180, 1.00 bps increased from prior closing of 0.9080.

US stocks opened mixed this morning as Congress signaled progress on a potential $748 billion stimulus bill. The Fed began its two-day meeting today, with markets anticipating new guidance on its current $120 billion a month asset purchase. Elsewhere WTI Crude and Gold both increased by 0.40% and 0.50%, respectively. On the economic front, MBA Mortgage Applications rose by 1.10% for the week ending December 11. Notably, purchases and refi's were both up by 1.80% and 1.40%, respectively, with refi's accounting for 72.70% of all loans. The average 30 year fixed rate stood at 2.85%. Retail Sales MoM failed to meet expectations after reporting a drop of 1.10% for the month of November. In addition to November's decline, October's figure was also revised to -0.10%, the first drop in retail sales since April. Headwinds continue to come from increased virus cases and shutdowns, in a addition to cold weather which could aggravate conditions further. Hopes still remain that congress overcomes its current stalemate over the stimulus bill, with leaders signalling a potential deal could come about by week end. Reporting tomorrow are Initial Jobless Claims and Housing Starts, both expected at 813K and 1.535mm, respectively.

The curve has bear-steepened with UST 10-Year yield up 1.00 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  12/15 Empire Manufacturing 05:30 Dec 6.30 4.90 6.30 -  
                   
  12/15 Import Price Index MoM 05:30 Nov 0.30% 0.10% -0.10% -  
                   
  12/15 Import Price Index YoY 05:30 Nov -0.90% -1.00% -1.00% -  
                   
  12/16 MBA Mortgage Applications 04:00 11 Dec - 1.10% -1.20% -  
                   
  12/16 Markit US Manufacturing PMI 06:45 Dec P 55.80 56.50 56.70 -  
                   
  12/16 Markit US Services PMI 06:45 Dec P 55.90 55.30 58.40 -  
                   
  12/16 Markit US Composite PMI 06:45 Dec P - 55.70 58.60 -  
                   
  12/17 Building Permits 05:30 Nov 1560k - 1545k 1544k  
                   
  12/17 Building Permits MoM 05:30 Nov 1.00% - 0.00% -0.10%  
                   
  12/17 Housing Starts 05:30 Nov 1535k - 1530k -  
                   
  12/17 Housing Starts MoM 05:30 Nov 0.30% - 4.90% -  
                   
  12/17 Initial Jobless Claims 05:30 12 Dec 813k - 853k -  
                   
  12/17 Continuing Claims 05:30 5 Dec 5700k - 5757k -  
                   
  12/17 Bloomberg Consumer Comfort 06:45 13 Dec - - 49.00 -  
                   
  12/18 Leading Index 07:00 Nov 0.50% - 0.70% -
                   
 
 
 
 
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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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