The curve has steepened up a bit following yesterday’s announcement regarding interest on excess reserves (IOER), equity markets are essentially unchanged overnight while oil is down 1.3%. In their May 2nd meeting, the Fed discussed lowering the rate paid on excess reserves from the top end of the range by 5 bps. This adjustment will likely take place at the June meeting.

In terms of data releases, jobless claims came in higher than expected at 234,000 compared to 220,000; and was an increase from the prior week of 222,000. The continuing claims number also saw an increase from the prior week by 34,000 to 1,741,000.

Hafizan Hamzah
Director, Investment Management Group

05/21Chicago Fed Nat Activity Index0.30.340.10.32
05/22Richmond Fed Manufact. Index1016-3
05/23MBA Mortgage Applications-2.60%-2.70%
05/23Markit US Manufacturing PMI56.556.656.5
05/23Markit US Services PMI5555.754.6
05/23Markit US Composite PMI55.754.9
05/23New Home Sales680k662k694k672k
05/23New Home Sales MoM-2.10%-1.50%4.00%2.00%
05/23Revisions: New Homes
05/23FOMC Meeting Minutes
05/24Initial Jobless Claims220k234k222k223k
05/24Continuing Claims1746k1741k1707k1712k
05/24House Price Purchase Index QoQ0.70%1.70%1.60%1.70%
05/24FHFA House Price Index MoM0.60%0.10%0.60%0.80%
05/24Bloomberg Consumer Comfort55.254.6
05/24Existing Home Sales5.55m5.60m
05/24Existing Home Sales MoM-0.90%1.10%
05/24Kansas City Fed Manf. Activity2026
05/25Durable Goods Orders-1.30%2.60%
05/25Durables Ex Transportation0.50%0.10%
05/25Cap Goods Orders Nondef Ex Air0.70%-0.40%
05/25Cap Goods Ship Nondef Ex Air0.40%-0.80%
05/25Revisions: Wholesale Trade
05/25Revisions: Retail Sales
05/25U. of Mich. Sentiment98.898.8
05/25U. of Mich. Current Conditions98.6113.3
05/25U. of Mich. Expectations89.5
05/25U. of Mich. 1 Yr Inflation2.80%
05/25U. of Mich. 5-10 Yr Inflation2.50%