Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  US Economy and Credit Markets Week Ended April 4, 2014
Posted Under: Weekly Market Commentary
Supporting Image for Blog Post

 
The Treasury yield curve experienced a twist over the course of the week as yields rose for 10-year and 30-year maturities but dropped for shorter duration maturities. The twist began on Monday as yields dropped across the board, but much more for short and intermediate duration Treasury notes. This was the result of Federal Reserve Chairwoman Janet Yellen appearing to backtrack earlier comments on how quickly the Fed would hike interest rates, as she said the central bank will maintain "extraordinary economic support for some time to come." Treasury yields then rose for all maturities on Tuesday, except to a much larger extent for 10-year and 30-year durations, on optimism in the Equity markets for a spring rebound in economic data. This trend continued on Wednesday after a positive private-sector jobs report gave optimism about the coming payrolls report. Automatic Data Processing, Inc. data showed the fastest hiring pace in three months, which gave support to the theory that the economy will pick up with warmer weather. However, on Friday, the payrolls report showed slow improvement as the unemployment rate stayed unchanged at 6.7% and equities tumbled. This caused yields dropped significantly on Friday to close the week only slightly higher. Intermediate durations dropped more than short or long term maturities on Friday also. Major economic reports (and related consensus forecasts) for the upcoming week include: Wednesday: April 4 MBA Mortgages Applications, February Wholesale Inventories (0.5% MoM); Thursday: April 5 Initial Jobless Claims (320K); Friday: March Producer Price Index Final Demand (0.1% MoM, 1.2% YoY), University of Michigan Confidence (81.5).

Posted on Monday, April 7, 2014 @ 7:45 AM • Post Link Share: 
Print this post 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.
Search Posts
MARKET ANALYSIS


 PREVIOUS POSTS
US Stocks Week Ended April 4, 2014
Job & Economic Growth Could Drive Auto Sales Higher
Biotechnology Ranked 2nd In Funding From Venture Capitalists For 3rd Year In A Row in 2013
US Economy and Credit Markets Week Ended Mar. 27, 2014
US Stocks Week Ended March 27, 2014
The V-Shaped Recovery In Stock Dividends Is Now A Check Mark
A Look at the 2nd Quarter
It’s Back To The Future With Dividend-Paying Stocks
US Economy and Credit Markets Week Ended Mar. 21, 2014
US Stocks Week Ended March 21, 2014
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.