US Economy and Credit Markets Ended Dec. 30, 2016
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Treasury prices rose over the course of the holiday-shorted week on strong demand in Treasury auctions and poor housing data. On Tuesday, Treasuries started the week down slightly in a thinly traded session as investors continued the sell-off that has persisted during the 2nd half of 2016. However, this trend was reversed the rest of the week. Treasury prices climbed on Wednesday as pending home sales came in much weaker than expected. Despite thin trading during the week, Thursday saw strong demand for a 7-year Treasury auction that sold 2 basis points below where the 7-year Treasury was trading before the sale. On Friday, the Chicago Purchasing Manager index was poorer than expected which helped Treasuries to end the week even higher as yields reach their lowest levels since the middle of December. Major economic reports (and related consensus forecasts) for the upcoming holiday shortened week include: Tuesday: December Final Markit US Manufacturing PMI (54.2), December ISM Manufacturing (53.8), November Construction Spending (0.5% MoM); Tuesday: December 30 MBA Mortgage Applications, Wednesday: December ADP Employment Change (175,000), December 31 Initial Jobless Claims (260,000); Thursday: November Trade Balance (-$44.0B), December Change in Nonfarm Payrolls (180,000), December Unemployment Rate (4.7%), November Factory Orders (-2.3%), November Final Durable Goods Orders (-4.6%).
Posted on Tuesday, January 3, 2017 @ 8:27 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.