US Economy and Credit Markets Ended Nov. 26, 2021

Last week, the yield curve flattened as short-end yields held steady while yields on longer-term maturities fell. Yields rose across maturities through Wednesday, but the announcement of a new Coronavirus variant discovered in South Africa pushed bonds higher on the last day of the shortened trading week. The strain is thought to be the most mutated variant yet creating concern over the effectiveness of current COVID vaccines and the durability of global economic recovery. "This is the most significant variant we have encountered to date and urgent research is underway to learn more about its transmissibility, severity and vaccine-susceptibility," a UK health official explained. In economic news, jobless claims fell to 199,000, the lowest level since 1969, and personal spending rose 1.3%. Both reports comfortably beat consensus expectations. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: November MNI Chicago PMI (67.0, 68.4), November Conference Board Consumer Confidence (110.8, 113.8); Wednesday: November 26 MBA Mortgage Applications (n/a, 1.8%), November ADP Employment Change (520k, 571k), November final Markit US Manufacturing PMI (59.1, unch.), October Construction Spending MoM (0.5%, -0.5%), November ISM Manufacturing (61.0, 60.8%); Thursday: November 27 Initial Jobless Claims (250k, 199k); Friday: November Change in Non-Farm Payrolls (550k, 531k), November Unemployment Rate (4.5%, 4.6%), October Factory Orders (0.5%, 0.2%), and October final Durable Goods Orders (n/a, -0.5%).
Posted on Monday, November 29, 2021 @ 9:14 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.