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Market Commentary


 
 
Today's Coupons
 
  10-Year Notes   108-05 (+1-02)  
 
  FN 3.5% Coupon   105-24.5 (+01)  
 
  Support   2.594%  
 
  Resistance   0.5692%  
 
 
 
 
  Wednesday, April 15, 2020
 
 

Treasury Yields Fall on Gloomy Economic Data and Corporate Earnings

 
 
Market opened today’s session with treasuries advancing across all maturities. 10-Year Treasury yield is at 0.6568, 9.52 bps decreased from prior closing of 0.7520.

Stocks declined as risk-off mood dominated the sentiment after the latest economic data and corporate earnings showed the impact of the coronavirus pandemic. Retail Sales in March plunged to -8.70% from an upwardly revised prior reading of -0.40%, and Empire Manufacturing in April also tumbled to -78.20 from prior of -21.50. In corporate news, banks, among the first major companies to report their first quarter results, led the losses in equities this morning after reporting sharp declines in earnings as they set aside billions of dollars for loans likely to cause credit losses from the current economic shutdown. Treasuries and the dollar extended gains with mortgages underperforming Treasuries. MBA mortgage applications index rose 7.30% after falling 17.90% in prior week. Purchases declined 1.80% and refinances increased 10.10% after falling 12.20% and 19.40% in prior week, respectively. Elsewhere, WTI crude retreated below $20 a barrel after the International Energy Agency reported that the world risks running out of places to store crude from the demand shock caused by the pandemic. Later today, the Fed will release Beige Book at 11:00 AM (PT).

The curve has bull-flattened with UST 10-Year yield down 9.52 bps.
 
 
   
 
   
 
This Week's Events
 
 
  DATE EVENT TIME(PT) PERIOD SURVEY ACTUAL PRIOR REVISED  
  04/14 Import Price Index MoM 05:30 Mar -3.20% -2.30% -0.50% -0.70%  
                   
  04/14 Import Price Index YoY 05:30 Mar -5.00% -4.10% -1.20% -1.30%  
                   
  04/14 Export Price Index MoM 05:30 Mar -1.90% -1.60% -1.10% -  
                   
  04/14 Export Price Index YoY 05:30 Mar - -3.60% -1.30% -  
                   
  04/15 MBA Mortgage Applications 04:00 10 Apr - 7.30% -17.90% -  
                   
  04/15 Retail Sales Advance MoM 05:30 Mar -8.00% -8.70% -0.50% -0.40%  
                   
  04/15 Empire Manufacturing 05:30 Apr -35.00 -78.20 -21.50 -  
                   
  04/15 Capacity Utilization 06:15 Mar 74.00% 72.70% 77.00% -  
                   
  04/15 Net Long-term TIC Flows 13:00 Feb - - $20.90B -  
                   
  04/15 Total Net TIC Flows 13:00 Feb - - $122.90B -  
                   
  04/16 Housing Starts 05:30 Mar 1300k - 1599k -  
                   
  04/16 Housing Starts MoM 05:30 Mar -18.70% - -1.50% -  
                   
  04/16 Building Permits 05:30 Mar 1296k - 1464k 1452k  
                   
  04/16 Building Permits MoM 05:30 Mar -10.70% - -5.50% -6.30%  
                   
  04/16 Philadelphia Fed Business Outlook 05:30 Apr -30.00 - -12.70 -  
                   
  04/16 Initial Jobless Claims 05:30 11 Apr 5350k - 6606k -  
                   
  04/16 Continuing Claims 05:30 4 Apr - - 7455k -  
                   
  04/16 Bloomberg Consumer Comfort 06:45 12 Apr - - 49.90 -  
                   
  04/17 Leading Index 07:00 Mar -7.00% - 0.10% -
                   
 
 
 
 
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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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