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 Feb. 18, 2022
Posted Under: Weekly Market Commentary
Supporting Image for Blog Post

U.S. Treasury bond yields finished the week lower across the yield curve as markets reacted to the fluid Ukraine-related news and persistent inflation pressure on the U.S. economy. Producer Price Index (the PPI) data was reported early last week. The PPI rose 1.0% in January, 0.5% higher than expected. Producer prices are up 9.7% versus a year ago, reaffirming that inflation is rampant in the U.S. economy. Treasury yields jumped on Tuesday, most notably the 10-year treasury yield hit its highest level since July 2019. Investors shifted to risky assets in reaction to Ukraine-related headlines suggesting easing tensions. The Federal Open Market Committee (the FOMC or the Fed) January meeting minutes were released on Wednesday. Compared to the dramatic policy shift from the Fed at the beginning of the year, commentary out of the Fed's January meeting was tamer. Most notably, the Fed made no clear hint to a 50 bps rate hike in their minutes. According to Bloomberg's calculation, the odds of a 50 bps rate hike instead of a 25 bps rate hike dropped from 63% to 50%. Treasury yields fell sharply on Thursday as Ukraine-related tensions re-emerged. Ukraine officials and separatists exchanged blame over ceasefire violations and U.S. President Biden mentioned a Russian invasion into Ukraine could happen in the next "several days." The geopolitical uncertainty renewed investor interest in safe haven assets going into President's Day weekend. Major economic reports (related consensus forecasts, prior data) for the upcoming holiday-shortened week include Tuesday: February Preliminary Markit US Manufacturing PMI (56.0, 55.5), February Preliminary Markit US Services PMI (53.0, 51.2), February Preliminary Markit US Composite PMI (53.0, 51.2).
Posted on Tuesday, February 22, 2022 @ 8:32 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

Top-Performing S&P 500 Index Subsectors YTD (Thru 2/15)
Rising Bond Yields And Stock Performance
US Stock Markets Ended Feb. 11, 2022
US Economy and Credit Markets Ended Feb. 11, 2022
This Covered Call Index Tends To Outperform The S&P 500 When Returns Are Modest Or Down
S&P 500 Index Earnings & Revenue Growth Rate Projections
US Stock Market Ended Feb. 4, 2022
US Economy and Credit Markets Ended Feb. 4, 2022
S&P 500 Index Dividend Payout Profile
A Global Snapshot Of Government Bond Yields
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.