January 20, 2021 Headlines

A positive tone in risk markets overnight is contributing to slightly higher long-end Treasury yields this morning. U.S. equity futures are up 38-97 bps ahead of the open, with tech leading the way, and the 10-year yield is holding near 1.10%.  The MBA mortgage applications index fell 1.9% last week, fueled by a 4.7% decline in refinance applications (purchase apps +2.7%). The MBA’s survey shows a 6 basis point increase in the average 30-year conventional rate in the first two weeks of January, or 30% of the increase in the 10-year yield over that same period. The spread between the rate at which a mortgage originator can lend and the rate at which that lender can sell that mortgage remains above historical averages, which gives those originators more pricing flexibility as rates rise.

Jason Haley
Chief Investment Officer

Date Event Surv(M) Actual Prior Revised
01/19/21 Total Net TIC Flows $214.1b -$10.4b -$11.1b
01/19/21 Net Long-term TIC Flows $149.2b $51.9b
01/20/21 MBA Mortgage Applications -1.90% 16.70%
01/20/21 NAHB Housing Market Index 86 86
01/21/21 Housing Starts 1560k 1547k
01/21/21 Housing Starts MoM 0.80% 1.20%
01/21/21 Building Permits 1605k 1639k 1635k
01/21/21 Building Permits MoM -1.80% 6.20% 5.90%
01/21/21 Philadelphia Fed Business Outlook 11.5 11.1 9.1
01/21/21 Initial Jobless Claims 935k 965k
01/21/21 Continuing Claims 5300k 5271k
01/21/21 Bloomberg Economic Expectations 38.5
01/21/21 Bloomberg Consumer Comfort 43.2
01/22/21 Markit US Manufacturing PMI 56.5 57.1
01/22/21 Markit US Composite PMI 55.3
01/22/21 Markit US Services PMI 53.4 54.8
01/22/21 Existing Home Sales 6.55m 6.69m
01/22/21 Existing Home Sales MoM -2.10% -2.50%

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