January 21, 2021 Headlines

Treasury yields are moving higher and steeper after the ECB pledged to maintain its ultra-accommodative monetary policies for as long as needed.  A Bloomberg article reports that President Biden’s $1.9 trillion stimulus proposal faces resistance from moderate Republican senators he would likely need support from to get the bill passed. Senators Mitt Romney and Lisa Murkowski are both expressing reservations of pursuing such a large aid package so soon after what Congress already passed in December. “The ink is just barely dry on the $900 billion, and what the president is proposing is significant — $1.9 trillion,” said Murkowski.

There were several economic releases this morning, which were generally better than expected. Jobless claims were improved, and housing starts also exceeded expectations in December. Regarding the latter, single-family starts surged 12% to a 1.34-million-unit annual pace, the highest since 2006. Single-family starts totaled 991,200 for 2020, also a post-2006 record.  

Jason Haley
Chief Investment Officer

DateEventSurv(M)ActualPriorRevised
01/19/21Total Net TIC Flows$214.1b-$10.4b-$11.1b
01/19/21Net Long-term TIC Flows$149.2b$51.9b
01/20/21MBA Mortgage Applications-1.90%16.70%
01/20/21NAHB Housing Market Index868386
01/21/21Housing Starts1560k1669k1547k1578k
01/21/21Housing Starts MoM0.80%5.80%1.20%3.10%
01/21/21Building Permits1608k1709k1639k1635k
01/21/21Building Permits MoM-1.70%4.50%6.20%5.90%
01/21/21Philadelphia Fed Business Outlook11.826.511.19.1
01/21/21Initial Jobless Claims935k900k965k926k
01/21/21Continuing Claims5300k5054k5271k5181k
01/21/21Bloomberg Economic Expectations38.5
01/21/21Bloomberg Consumer Comfort43.2
01/22/21Markit US Manufacturing PMI56.557.1
01/22/21Markit US Composite PMI55.3
01/22/21Markit US Services PMI53.454.8
01/22/21Existing Home Sales6.56m6.69m
01/22/21Existing Home Sales MoM-2.00%-2.50%

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