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US Economy and Credit Markets Ended July 2, 2020
U.S. Treasury bond yields chopped around for much of the holiday-shortened week. The week wrapped up with short-term U.S. Treasury bond yields lower while the longer-dated U.S. Treasury bond yields held on to gains. Treasury bond yields jumped on Wednesday after Federal Reserve meeting minutes exhibited Fed officials discussing yield curve control as well as an agreeance amongst the Fed officials that the Federal Reserve should provide more clarity on monetary policy. Treasury bond yields initially popped on Thursday after the strong jobs report in the morning. Nonfarm payrolls rose by 4.80 million in June, well above the consensus estimate of a 3.23 million gain. The unemployment rate dropped 2.2% during the month of June to 11.1%. Treasury bond yields pared some of Thursday morning's gains as economic recovery doubts stoked bond buying going into the long weekend. Major economic reports (related consensus forecasts, prior data) for the upcoming week include: Monday: June Final Markit US Services PMI (47.0, 46.7), June Final Markit US Composite PMI (n/a, 46.8), June ISM Non-Manufacturing Index (50.0, 45.4); Wednesday: July 3 MBA Mortgage Applications (n/a, -1.8%); Thursday: July 4 Initial Jobless Claims (n/a, 1427k), June 27 Continuing Claims (n/a, 19290k), May Final Wholesales Inventories MoM (-1.2%, -1.2%); Friday: June PPI Final Demand MoM (0.4%, 0.4%), June PPI Final Demand YoY (-0.2%, -0.8%).
Monday, July 6, 2020 @ 2:50 PM
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.