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Market Commentary



 
Today's Coupons
 
  10-Year Notes   98-12.5 (-11.5)  
 
  FN 3.5% Coupon   102-19 (-05)  
 
  Support   2.818%  
 
  Resistance   1.697%  
 
 
 
 
  Wednesday, December 18, 2019
 
 

Treasury Yields Climb as Stocks Extend Gains for Sixth Day

 
 
Market opened today’s session with treasuries inching lower across all maturities. 10-Year Treasury yield is at 1.9029, 2.28 bps increased from prior closing of 1.8801.

US equity futures opened little changed earlier this morning and rose later on as investors digested a barrage of corporate news, shrugging off impeachment noise. FedEx shares slid more than 7% on its disappointing earnings and revenue reports and a cut to its forecast for the rest of its fiscal year, reminding market participants of the headwinds to growth despite of recent on-hold stance by the Fed and a partial deal between the US and China. PSA Group rallied and Fiat Chrysler remained steady after they agreed to merge to create the world’s fourth-biggest auto manufacturer. Treasuries struggled and the dollar strengthened against most of its peers while the pound sold-off due to renewed concern on possibility of a no-deal Brexit. Elsewhere, WTI crude edged lower after reaching a three-month high above $61 a barrel.

We have a very light economic calendar today. MBA Mortgage Applications Index fell 5.00% after rising 3.80% in prior week. Purchases and refinances fell 2.10% and 6.50% after falling 0.40% and rising 8.70% in prior week, respectively. Later today, the US Treasury is scheduled to auction off $18 billion of 2-year FRNs Reopening at 8:30 AM (PT). Also, Federal Reserve’s Brainard is scheduled to speak at an ECB event in Frankfurt.

The curve has bear steepened with UST 10-Year yield up 2.28 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  12/16 Empire Manufacturing 05:30 Dec 4.00 3.50 2.90 -  
                   
  12/16 NAHB Housing Market Index 07:00 Dec 70.00 76.00 70.00 71.00  
                   
  12/16 Net Long-term TIC Flows 13:00 Oct - $32.50b $49.50b -  
                   
  12/16 Total Net TIC Flows 13:00 Oct - -$48.30b -$37.60b -$38.10b  
                   
  12/17 Housing Starts 05:30 Nov 1345k 1365k 1314k 1323k  
                   
  12/17 Housing Starts MoM 05:30 Nov 2.40% 3.20% 3.80% 4.50%  
                   
  12/17 Building Permits 05:30 Nov 1410k 1482k 1461k -  
                   
  12/17 Building Permits MoM 05:30 Nov -3.50% 1.40% 5.00% -  
                   
  12/17 Capacity Utilization 06:15 Nov 77.40% 77.30% 76.70% 76.60%  
                   
  12/17 JOLTS Job Openings 07:00 Oct 7009 7267 7024 7032  
                   
  12/18 MBA Mortgage Applications 04:00 13 Dec - -5.00% 3.80% -  
                   
  12/19 Philadelphia Fed Business Outlook 05:30 Dec 8.00 - 10.40 -  
                   
  12/19 Initial Jobless Claims 05:30 14 Dec 225k - 252k -  
                   
  12/19 Continuing Claims 05:30 7 Dec 1676k - 1667k -  
                   
  12/19 Bloomberg Consumer Comfort 06:45 15 Dec - - 62.10 -  
                   
  12/19 Leading Index 07:00 Nov 0.10% - -0.10% -  
                   
  12/19 Existing Home Sales 07:00 Nov 5.44m - 5.46m -  
                   
  12/19 Existing Home Sales MoM 07:00 Nov -0.40% - 1.90% -  
                   
  12/20 Personal Consumption 05:30 3Q T 2.90% - 2.90% -  
                   
  12/20 GDP Price Index 05:30 3Q T 1.80% - 1.80% -  
                   
  12/20 Personal Income 07:00 Nov 0.30% - 0.00% -  
                   
  12/20 Personal Spending 07:00 Nov 0.40% - 0.30% -  
                   
  12/20 PCE Deflator MoM 07:00 Nov 0.20% - 0.20% -  
                   
  12/20 PCE Deflator YoY 07:00 Nov 1.40% - 1.30% -  
                   
  12/20 U. of Mich. Sentiment 07:00 Dec F 99.20 - 99.20 -  
                   
  12/20 Kansas City Fed Manf. Activity 08:00 Dec -3.00 - -3.00 -
                   
 
 
 
 
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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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