Should there be any doubt whatsoever that we will have a wild and crazy week? I don’t know if interest rates will be wild, or if it will be isolated to the stock markets–probably both.
At this moment we don’t have any Fed officials scheduled to shoot their mouths off this week and the economic data to be released is more minor items–although retail sales and leading economic indicators could cause some disruption. Here is the calendar
Last week the S&P500 moved in a range of 3859 and 4081 before closing the week at 4024 which is a loss of 2.4% on the week.
The 10 year treasury traded in a wide range of 2.82% to 3.17% before closing the week at 2.93% which was a full 18 basis points below the close on the previous Friday.
The Fed balance sheet rose by 2 billion dollars.
Last week, in spite of falling interest rates, $25/share preferreds and baby bonds fell in price. The average share price fell by 12 cents. Investment grade issues rose by 5 cents. CEF issues fell by 10 cents. Shippers fell by 8 cents and mREIT preferreds fell by 54 cents (ouch).
Last week we had no new income isssues priced.
10 thoughts on “Monday Morning Kickoff”
Time to establish position?
FOM, this is an excellent blog and though I don’t agree with everything he publishes there is always excellent information to think about https://www.mrmoneymustache.com/2022/05/20/2022-stock-market-crash/
The only real journey is the one within, Azure
Azure, thanks for the pointer to MMM. What a cheery fellow (although I’m do wondering where/how he’s living on only $20k/year…).
Apart from the typo (‘I’m do wondering?’ ~~~ (⊙.☉)7 ~~~ doh), I’m reflecting on how tone-deaf this post was. Apologies…
QT will start in June
Please note that the calendar includes a fair number of speeches/interviews of Fed officials on Tuesday, including Bullard in the morning, Powell in the afternoon and Mester starting an inflation conference in the afternoon.
Why does the FED balance sheet keep creeping up, thought they were unwinding?
I’m interested in the answer to this question as well.
I also want to know what “balance sheet rose” means: is ‘balance sheet’ shorthand for ‘total assets’?
Just realized that esp1090’s post may be an answer to mikeo’s?
prices went up on their assets. (accrued interest on zeroes)
2bil is pennies on their 8T balance sheet