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 April 8, 2022
Posted Under: Weekly Market Commentary

 
The Treasury market continues to scratch at its eyes as rising yields are putting significant pressure on price. Particularly of note, the 10- year yield went from 2.395 to 2.700 Monday to Friday. A knock-on effect is that the curve meaningfully steepened. The Minutes of the Federal Open Market Committee dated March 15-16 were released April 6, and the minutes coupled with Tuesday comments from Federal Reserve Governor Lael Brainard, widely regarded as a dovish Governor, sent yields thrusting higher. Her comments noted a strong recovery will enable a more rapid reduction of the balance sheet compared to the last reduction in 2017-2019.  Her Tuesday comments were corroborated by the Wednesday meeting notes which said "discussion was preceded by a staff presentation that reviewed the Committee's 2017–19 experience with balance sheet reduction and presented a range of possible options for reducing the Federal Reserve's securities holdings over time in a predictable manner. All of the options featured a more rapid pace of balance sheet runoff than in the 2017–19 episode." Prior to the news eclipse that was the Federal Reserve, last Tuesday saw an increase to the March ISM Non-Manufacturing Index reading at 58.5; greater than the 50 denoting expansion. Also reported, the Trade deficit was recorded at $89.2 billion, high, but in-line with the prior month. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: March CIP MoM (0.5%, unch.); Wednesday: April 8 MBA Mortgage Applications (n/a, -6.3%); Thursday: April 9 Initial Jobless Claims (175k, 166k) and University of Michigan April Preliminary Sentiment (58.9, 59.4); Friday: April Empire Manufacturing (1.0, -11.8) and March Industrial Production MoM (0.4%, 0.5%).
Posted on Monday, April 11, 2022 @ 8:12 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
S&P 500 Index Dividends And Buybacks At Record Highs
The Only Constant Is Change
US Stock Markets Ended April 1, 2022
US Economy and Credit Markets Ended April 1, 2022
Passive Investment Vehicles Have Posted The Strongest Asset Growth Since The End of 2007
The Real Rate of Return on the 10-Year Treasury Note
US Stock Markets Ended March 25, 2022
US Economy and Credit Markets Ended March 25, 2022
The Buy And Hold Investment Strategy Is Not Dead
A Global Snapshot Of Government Bond Yields
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.