US Economy and Credit Markets Ended March 5, 2021
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U.S. Treasury bond yields increased across the yield curve last week, with larger gains at the long end of the curve. Last week the 10-year treasury bond yield hit its highest intraday level in a year as the bond selloff continued. In a speech on Thursday, Federal Reserve Chairman Jerome Powell largely stuck to the script and remained dovish on bond yields but mentioned bond yields have caught his eye. Treasury yields spiked in response to the Chairman's comments. Investors digested a batch of positive jobs data at the end of the week as the labor market continues to recover. Nonfarm payrolls increased 379,000 in February, which was 179,000 higher than the expectation. The large increase in nonfarm payrolls was due to a surge in the leisure and hospitality sector. Unemployment dropped to 6.2%, a 0.1% drop from January. Average hourly earnings rose 0.2% last month as well. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Monday: January Final Wholesale Inventories MoM (1.3%, 1.3%); Tuesday: February NFIB Small Business Optimism 96.8, 95.0); Wednesday: March 5 MBA Mortgage Applications (n/a, 0.5%), February CPI MoM (0.4%, 0.3%), February CPI YoY (1.7%, 1.4%), February Monthly Budget Statement (-$305.0b, -$162.8b); Thursday: March 6 Initial Jobless Claims (725k, 745k), February 27 Continuing Claims (4197k, 4295k); Friday: February PPI Final Demand MoM (0.4%, 1.3%), February Final Demand YoY (2.7%, 1.7%), March Preliminary University of Michigan Sentiment (78.0, 76.8)
Posted on Monday, March 8, 2021 @ 8:03 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.