Stifel Tag Archives

Economic and Fixed Income Insights, February 5, 2020

Equity markets continue to rebound from last week’s sell-off. According to reports, fears of the coronavirus have subsided somewhat amid reports of “progress” toward a cure. On the domestic front, economic data remains positive, but lack of inflationary pressures continues to linger. After dropping over 20 basis points at the end of January, U.S. Treasury (UST) yields have trended higher over the past few trading days.

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Economic and Fixed Income Insights, December 17, 2018

The housing market posted strong results this week. On Tuesday, Bloomberg reported that housing starts rose 3.2 percent in November, pulling the annual pace up from 1,323,000 to 1,365,000, a three-month high. In other housing news, building permits unexpectedly rose 1.4 percent in November from 1,461,000 to a 1,482,000-unit pace, a more than twelve-year high.

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Economic and Fixed Income Insights, November 5, 2019

The U.S. labor market beat expectations in October, adding 128,000 jobs vs the 85,000 expected, according to Bloomberg. In the details, hourly earnings were up three percent from the year prior. In the markets, rates remain volatile and finished the week slightly higher as market optimism soars on the prospect of a phase one deal between the U.S. and China. The benchmark ten-year Treasury finished two basis points higher for the week to yield 1.86 percent. Tax-exempt yields finished slightly lower, lagging behind the moves in the taxable market.   

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Economic and Fixed Income Insights, October 1, 2019

September was the worst month for U.S. manufacturing since 2009, according to the latest Institute for Supply Management manufacturing index reading. Together with private payroll data that showed a slowdown in hiring during September, the manufacturing reading has investors worried that the broader economy will soon feel the effects of the trade dispute with China.

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Economic and Fixed Income Insights, September 24, 2019

In the housing market, sales of new homes surpassed expectations in August as mortgage rates remain near recent lows with growth concentrated in the South and West. Yields remain volatile, falling from the recent uptick seen last week. The benchmark ten-year Treasury fell 15 basis points from 1.80 percent to 1.65 percent, while the long bond saw a slightly larger drop of 17 basis points.

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Economic and Fixed Income Insights, September 17, 2019

In a widely anticipated move, the Federal Reserve cut rates by another quarter-point, setting the target range for the federal funds rate at 1.75 – 2.00 percent.  In their summary statement, the Federal Reserve maintained a generally positive outlook of both the labor market and household consumption, but noted a decline in both exports and business spending. According to the “dot plot,” officials were split on the appropriate future path for rates. 

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