US Economy and Credit Markets Ended Jan. 22, 2021

Bob Carey
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US Economy and Credit Markets Ended Jan. 22, 2021

Posted Under: Weekly Market Commentary

US Treasury bond yields were mixed last week. The shorter-dated yields pulled back while the longer-end of the yield curve gained over the course of the holiday-shortened week. The long end of the yield curve steepened on Tuesday in reaction to the Senate's confirmation hearing of former Federal Reserve Chairman Janet Yellen for Treasury Secretary. Yellen mentioned she was open to the idea of adding a 50-year Treasury bond, something the Trump administration considered. Treasury yields were mostly down on Wednesday as Joe Biden was sworn in the as the 46th President of the United States, making further fiscal stimulus all but inevitable. The week wrapped up with the release of data supporting the continued strength of the housing market. Housing starts increased 5.8% in December, while existing home sales increased 0.7% in December, good for a 22.2% increase versus existing home sales a year ago. Though existing home sales face inventory headwinds going forward. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: November FHFA House Price Index MoM ( 0.6%, 1.5%), January Conference Board Consumer Confidence (89.2, 88.6); Wednesday: January 22 MBA Mortgage Applications (N/A, -1.9%), December Preliminary Durable Goods Orders (0.9%, 1.0%), January 27 FOMC Rate Decision (Upper Bound) ( 0.25%, 0.25%); Thursday: December Preliminary Wholesale Inventories MoM (N/A, 0.0%), 4Q Advance GDP Annualized QoQ (4.4%, 33.4%), January 23 Initial Jobless Claims (878k, 900k), December Leading Index (0.3%, 0.6%), December New Home Sales (860k, 841k); Friday: December Personal Income (0.1%, -1.1%), December Personal Spending (-0.5%, -0.4%), 4Q Employment Cost Index (0.5%, 0.5%), January MNI Chicago PMI (58.0, 59.5), December Pending Home Sales MoM (-0.8%, -2.6%), January Final University of Michigan Sentiment (79.2, 79.2).

Posted on Monday, January 25, 2021 @ 8:16 AM • Post Link	Share:
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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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