US Economy and Credit Markets Week Ended June 8, 2012
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Treasury yields rebounded from record lows set last week as investors bet that the U.S. economy will not slow enough to justify such low rates and that European leaders may take action towards improving the debt crisis. Most of the yield gains were concentrated early in the week with prices relatively flat Thursday and Friday. Tuesday, May ISM non-manufacturing was reported at 53.7, slightly higher than the estimate of 53.4. On Wednesday ECB President Mario Draghi indicated that policy makers are "ready to act." Also Wednesday, first quarter non-farm productivity was reported to have declined 0.90% vs. expectations of -0.80%. Thursday, China cut interest rates for the first time since 2008 while Fed Chairman Ben Bernanke said the economy is at risk from Europe's crisis, but did not discuss any immediate action. Friday, the April trade deficit was reported at $50.1 billion against the estimate of $49.5 billion. Major economic reports (and related consensus forecasts) for next week include: Tuesday: May Import Price Index (-1.0% MoM, -0.6% YoY), May Monthly Budget Statement (-$125.0B); Wednesday: May PPI (-0.6% MoM, 1.2% YoY), May PPI Excluding Food & Energy (0.2% MoM, 2.8% YoY), May Advance Retail Sales (-0.2%), April Business Inventories (0.3%); Thursday: May CPI (-0.2% MoM, 1.8% YoY), May CPI Excluding Food & Energy (0.2% MoM, 2.2% YoY); Friday: June Empire Manufacturing Index (13.50), May Industrial Production (0.1%), May Capacity Utilization (79.2%), June U of M Consumer Confidence (77.5).
Posted on Monday, June 11, 2012 @ 8:27 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.