US Economy and Credit Markets Ended Sept. 16, 2016

U.S. Treasury yields rose last week amid lofty valuations and growing questions over major central banks' policy outlooks. Yields rose on Tuesday after showing signs of stability on Monday and early Tuesday, as a $12 billion sale of 30-year Treasury bonds added to the market's slide. Industrial production in August fell more than anticipated on Thursday after posting its largest gain in a year in July. Retail sales in August declined unexpectedly for the first time in five months. The decline in sales was led by autos, building materials and gas stations. Producer Price Index was unchanged in August, as a decline in demand goods was offset by an increase in demand services. Long-term notes strengthened on Friday, recovering from Thursday's losses as investors continued to react to economic data over central bank policies. The Consumer Price Index increased in August, coming in slightly above expectations. Real average hourly earnings declined 0.1% in August but still remain up 1.3% for the year and should continue to rise with employment growth. Major economic reports (and related consensus forecasts) for the upcoming week include: Tuesday: August Housing Starts (1191k); Wednesday: September 16th MBA Mortgage Applications, September 21st FOMC Rate Decision (Upper Bound) (0.50%); Thursday: September 17th Initial Jobless Claims (260k), August Existing Home Sales (5.45M), August Leading Index (0.0%); September Markit US Manufacturing PMI (52.0).
Posted on Monday, September 19, 2016 @ 8:25 AM

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.