US Economy and Credit Markets Week Ended May 11, 2012
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Treasury prices closed higher for the eighth straight week as continuing European debt concerns left investors seeking safe haven assets. Prices were unchanged on Monday as the market digested news that French President Nicolas Sarkozy was defeated by Francois Hollande. Treasuries were slightly higher on Tuesday as demand at the three-year note auction was the highest since January. Yields on Wednesday were once again unchanged as the 10-year auction was sold at a record low and Greece remained unable to forge progress in forming a coalition government. The yield on the ten year note was modestly higher on Thursday on mixed news that jobless claims were slightly better than anticipated, but JPMorgan reported an unexpected $2 billion trading loss. Prices closed the week with a small gain on Friday as Greece's failing to form a unity government outweighed that U of M consumer confidence rose to 77.8 and was higher than the projected 76.0. Major economic reports (and related consensus forecasts) for next week include: Tuesday: April Consumer Price Index (0.0%, +2.3% YoY), April Consumer Price Index Ex Food and Energy (+0.2%, +2.3% YoY), May Empire Manufacturing (9.5) and April Advance Retail Sales (+0.2%, +0.2% excluding autos); Wednesday: April Housing Starts (685,000, +4.7% MoM), April Building Permits (728,000, -4.7% MoM), April Industrial Production (+0.6%) and April Capacity Utilization (79.0%) and minutes of FOMC meeting released; Thursday: Initial Jobless Claims (365,000) and May Philadelphia Fed Index (10.0).
Posted on Monday, May 14, 2012 @ 8:22 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.