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US Economy and Credit Markets Week Ended April 20, 2012 Posted Under: Weekly Market Commentary   Treasuries nudged slightly higher this week as mixed economic data and concern about the European debt crisis spreading to Spain or Italy kept a bid for the securities in place. Bond markets were relatively quiet on Monday as markets anticipated key economic data releases. Yields rose a little on Tuesday when German investor confidence unexpectedly accelerated and a Spanish short term bond auction drew better than expected demand. In addition, March Advance Retail Sales beat expectations, printing at .8% vs. a .3% estimate. March Housing Starts, however, missed expectations (654K vs. 705K consensus) and Industrial Production figures were flat (0% vs. .3% consensus). The Federal Reserve also continued with “operation twist” buying $1.88B in long term treasuries. Later in the week treasuries edged higher on the heels of Thursday’s housing market data which missed expectations. March existing home sales were 4.48M vs. a consensus 4.61M and the monthly drop was -2.6% vs. an expected increase of .5%. The week closed with yields broadly lower as the U.S. 10 year note traded below 2% for the 6th straight day and negative sentiment regarding the European debt crisis weighed on equities. Major economic reports (and related consensus forecasts) for next week include: Tuesday: April Consumer Confidence (69.8), February Home Price Index MoM (.1%), March New Home Sales (1.6%); Wednesday: March Durable Goods Orders (-1.7%) and Durable Goods Orders ex-transportation (.5%), FOMC Rate Decision (.25%); Thursday: March Pending Home Sales MoM and YoY (1 and 7%, respectively); Friday: 1st Quarter GDP QoQ (Annualized) (2.5%), 1st Quarter Personal Consumption (2.3%), and April U. of Michigan Confidence (75.7) Posted on Monday, April 23, 2012 @ 8:15 AM • Post Link Share:   Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

 

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