Beyond the Headlines

U.S. markets are little changed to start the week with most eyes on Wednesday’s FOMC meeting. While no policy changes are expected from the Fed, market participants will be fixated on any discussion of QE tapering. Money market investors and depository institutions...

Markets continue to digest yesterday's CPI report that supported the Federal Reserve’s view of transitory inflation pressure. The headline report showed CPI increased 0.6% in May due to costs for used cars, household furnishings, airfare, and apparel. Core CPI, which...

CPI increased by 0.6% last month, higher than expected (0.5%). Core CPI, which excludes food and energy costs, rose by 0.7% in May. Price increases were driven by increasing costs for used cars, household furnishings, airfares, and clothing. Used vehicles were up 7.3%...

Treasuries and equities are continuing their rally this morning. The 10-year Treasury is 5 bps lower and is sitting below 1.50% for the first time since March. Meanwhile, equities are approaching record highs with the S&P 500 eclipsing its record earlier this...

Both Treasury and equity prices are higher this morning as inflation once again monopolizes investor attention. Stocks rebounded after an initial shock stemming from several major websites going offline in the early hours, they have since come back allaying...

The May jobs report was softer than expected for a second consecutive month. Nonfarm payrolls added 559,000 jobs in May versus expectations of a 675,000 increase, and the prior two months were revised higher by just 27,000 jobs. The headline unemployment rate fell...

Rates are a smidge higher this morning following comments made by Philadelphia Fed President Harker. He joined the chorus of Fed officials discussing the possibility of tapering, in his words “it may be time to at least think about thinking about tapering our $120...

Both rates and equity futures are little changed following a very quiet overnight session. There’s nothing substantial on the calendar between now and Friday’s jobs report to capture the market’s attention, which should keep rate volatility subdued barring some...

A mild risk-on tone in global markets is pushing Treasury yields higher and steeper to start the week, and US equity futures are up 40-75 bps. In an interview with the Financial Times, St. Louis Fed President Jim Bullard expressed his opinion that labor markets are...

It’s a relatively quiet morning for U.S. markets heading into the long holiday weekend. Treasury yields are little changed, and equity futures are up 20-40 bps ahead of the open. Personal income and spending growth for April was largely in line with expectations. Core...

Another Fed leader suggested the QE tapering discussion may need to begin soon, which is pushing Treasury yields higher and steeper this morning. Fed Vice Chair Randal Quarles said that he’s “fully committed” to the Fed’s current strategy, but he added that “it will...

US Treasuries are lower this morning ahead of today’s $61 billion 5-year auction. Overnight comments from Fed Vice Chair Richard Clarida reiterated that officials view price pressures in the US as transitory. However, Clarida added a statement that Federal Reserve...

Treasuries and U.S. equity futures are little changed to start the day following light trading overnight. A Bloomberg article suggests that moderate Democrats in both the House and Senate are having reservations about President Biden’s proposed tax hikes ahead of the...

Treasury yields are unchanged to slightly lower this morning following a relatively quiet overnight session, and U.S. equity futures are up 30-75 bps ahead of the open. This week’s economic calendar is headlined by the April PCE inflation report on Friday. The April...

It’s a fairly quiet morning with Treasury yields a smidge lower following yesterday’s bond rally and equity futures are slightly higher on the back of yesterday’s jobless claims data as well as solid earnings. The 10-year is currently sitting at 1.62% and futures on...

A modest risk-off tone is pushing Treasury yields slightly lower and flatter this morning. Volatility in crypto currencies fueled the softer sentiment overnight, but risk markets are opening better this morning, with U.S. equity futures unchanged to slightly higher...

Treasuries are once again trading in a narrow band with the belly and long-end down 1 bp. Equity futures are in the red this morning as inflation fears shook investor confidence. The S&P 500 is leading the decline with futures down 1.23%. Later today, the Fed will...

Treasuries traded in tight range overnight and are slightly lower on the long-end of the curve this morning. Futures on the major US equity indices are all up as continued reopening give investors hope. Like yesterday, today’s economic calendar is light with housing...

Treasury yields are slightly higher this morning while equity markets rebounded. Inflation continues to be the focus for investors as fears that rising prices may result in the Fed stepping back from the bond market. The minutes from April’s FOMC minute will be of...

Inflation worries continue to fade from the immediate shock following Wednesday’s CPI report. Treasury yields are modestly lower across the curve for a second day, and the breakeven yield on 5-year TIPS is down more than 15 bps from Wednesday’s high. The April retail...