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 Ended Jan. 21, 2022
Posted Under: Weekly Market Commentary
Supporting Image for Blog Post

Treasury yields were mixed over the course of the week as the yield curve flattened with shorter duration yields rising moderately and longer duration yields falling moderately. Treasury yields rose significantly on Tuesday as traders priced in some risk that the Federal Reserve may raise rates by 50 basis points in March. The market implied probability of a rate hike for the March meeting increased from 91.5% last week to 99.6% on Tuesday, and settled at 98.6% on Friday. Treasury yields then dropped significantly the rest of the week as there was a significant sell-off in the equity market causing investors to seek the perceived safety of Treasurys. However, yields for shorter duration Treasurys either rose slightly or did not fall as much during the equity sell-off as the 2-year Treasury yield hit a 52-week high on Thursday. Investors took a more risk-off approach as the initial jobless claims exceeded expectations of 225k and were at a 3-month high of 286k.  Major economic reports (related consensus forecasts, prior data) for the upcoming week include: Monday: January Prelim. Markit US Manufacturing PMI (56.7, 57.7); Tuesday: January Conf. Board Consumer Confidence (111.8, 115.8); Wednesday: January 21 MBA Mortgage Applications (n/a, 2.3%), December Prelim. Wholesale Inventories MoM (1.4%, 1.4%), December New Home Sales (765k, 744k), January 26 FOMC Rate Decision Upper Bound (0.25%, 0.25%); Thursday: January 22 Initial Jobless Claims (260k, 286k), December Prelim. Durable Goods Orders (-0.5%, 2.6%), 4th Quarter Advance GDP Annualized QoQ (5.3%, 2.3%); Friday: December Personal Income (0.5%, 0.4%), December Personal Spending (-0.6%, 0.6%), January Final U. of Michigan Sentiment (68.8, 68.8).
Posted on Monday, January 24, 2022 @ 8:20 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

Passive vs. Active Fund Flows
A Snapshot of Growth vs. Value Investing
US Stock Markets Ended Jan. 14, 2022
US Economy and Credit Markets Ended Jan. 14, 2022
The Real Rate Of Return On The 10-Year Treasury Note
Every Year Looks Volatile Compared To 2017
US Stock Markets Ended Jan. 7, 2022
US Economy and Credit Markets Ended Jan. 7, 2022
A Snapshot Of How Stocks Have Performed So Far This Millennium
The Only Constant Is Change
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.