Back to top

Market Commentary

Home
Market Commentary


Today's Market Commentary
Monday
June 24, 2013
10-YEAR NOTES   92-13 (-28) 2.63%
FN 3% COUPON   99-11 (-1-05)
SUPPORT   2.85%
RESISTANCE   2.40%
Market Commentary Scan Code
Scan with your
Smartphone.
 
 

Chicago Fed Nat Activity Index came in at -0.3 vs. -0.1 expected. At 10:30 AM EST the Dallas Fed Manufacturing Activity will be released (-1.5 expected). At 11:00 AM EST there is a $3-3.75 billion UST buyback in the 3/2019-5/2020 sector.

Overnight, Asia was a better seller of Treasuries and MBS further pressuring rates and MBS spreads. Stock markets across Europe and Asia are in the red (especially Asia, Shanghai -5%). In the US, the market is getting rocked as 10-Year notes are down 3/4 point and MBS are another 0.5 point wider to duration hedges (negative convexity at its finest). The latest leg down has been swift and brutal as even the once "bullet proof" front end of the yield curve starts to give way. Two Year notes have blown through strong support at 0.4% (the yield was 0.25% on 5/24) and 5-Year notes are now above 1.50%. The sharp steepening in 2s5s (now 110 bps) has really unnerved the market and hammered pricing on both ARMs and Fixed as evidenced by FN 3.5 coupon now well below 100 in the front month. All of this move can be attributed to the world adjusting to a Fed-less market as opposed to a true belief in a strong, sustainable recovery. Given the air pockets in the technical charts, weak long positions in the market, and convexity/bond fund redemptions the market very well may test 2.85% and then 3% barring any major negative news to add a bid to the market. Until positions get squared away and the market settles into a range, expect fear and loathing to persist in the bond markets.

There are several Fed speeches this week with the seemingly most important ones being Dudley on Thursday and Stein on Friday.

 
 
Visit Us Online

Get Approved

Download Rate Sheet

Price & Lock

Submit Loan

Resolve Loan Conditions

Conventional Program Guidelines

Government Program Guidelines
 
 
For more information, please call:
1-855-SWMC-AOT

FHA Programs
VA Programs
USDA Rural Housing
HECM Reverse Mortgage
Conforming Products
FHA Multifamily, PowerSaver

GNMA Issuer
Fannie Mae and Freddie Mac Direct Lender
Licensed throughout the U.S. and Puerto Rico
Privately Held Mortgage Bank for Over 32 Years
Excellent Underwriting / Funding Turn Times
 

This information is provided solely for informational use and is not intended as a trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not liscensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to 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, price, guidelines, fees, costs, terms and conditions are subject to change without notice.