US Economy and Credit Markets Ended Dec. 10, 2021

 
U.S. Treasury bond yields increased across the yield curve last week. Yield increases were led by the longer maturity end of the yield curve, which saw the largest weekly yield increases in months. At the end of the week, investors turned their attention to inflation data, which has been a key topic as the economy navigates COVID-19 related headwinds. The Consumer Price Index, or CPI, increased 0.8% in November, which came in 0.1% higher than expected. The CPI is up nearly 6.8% versus a year ago with real average hourly earnings down nearly 2% on the year. Though the CPI report was largely in-line with expectations, Friday's CPI data further supports the realization that inflation is not transitory and puts an even more critical eye on next week's FOMC meeting. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: November NFIB Small Business Optimism (98.4, 98.2), November PPI Final Demand MoM (0.5%, 0.6%), November PPI Final Demand YoY (9.2%, 8.6%); Wednesday: December 10 MBA Mortgage Applications (N/A, 2.0%), December Empire Manufacturing (25.0, 30.9), November Retail Sales Advance MoM (0.8%, 1.7%), December 15 FOMC Rate Decision (Upper Bound) (0.25%, 0.25%); Thursday: December 11 Initial Jobless Claims (200k, 184k), Permits (1660k, 1650k), December Philadelphia Fed Business Outlook (28.5, 39.0), November Industrial Production MoM (0.7%, 1.6%), November Capacity Utilization (76.8%, 76.4%), December 12 Langer Consumer Comfort (N/A, 51.0), December Preliminary Markit US Manufacturing PMI (58.5, 58.3), December Preliminary Markit US CompositePMI (N/A, 57.2), December Preliminary Markit US Services PMI (58.8, 58.0). 

Posted on Monday, December 13, 2021 @ 8:44 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.