Economic & Fixed Income Insights, June 6, 2018

Presented by Stifel, Nicolaus & Company, Inc.

Last week, while many market participants extended the long Memorial holiday weekend, a few economic reports were posted. On Wednesday, the final revisions showed the U.S. economic grew at a 2.2% pace in Q1, down from the initial estimate of 2.3%.  On Thursday, personal income rose 0.3% and personal spending rose 0.6% in April, according to Bloomberg. Also on Thursday, the personal consumption expenditures (CPE) index rose 0.2% in April, following a flat reading in March. In the bond markets, yields rose as investors digested a strong jobs report Friday and an equity rally led by technology stocks.  For the week, the 10-year UST climbed 15 basis points to yield 2.93%, and the 30-year UST finished 10 basis points higher at 3.08%.  Municipal yields were less volatile.  The 10-year MMD finished just 3 basis points higher to 2.44% while the long bond finished 7 basis points higher to 2.94%.

Interest Rate Observations

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of June 5, 2018.

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

 

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