A new week, although likely to be the same as last week with some volatility in equity prices with various DJT tweets and battles in Congress over the new budget details. We’ll find out who caves in as the congress people and senators joust mightily—we’ll judge who has the longest nose as they speak.
The S&P500 moved higher around 1.75% as markets liked the ‘official’ government employment report–slowing, but not too much too quickly. Markets have gotten used to the tariff issues and I guess generally are adjusted to all the Washingon balony–for now.
The 10 year Treasury closed to week at the high point of the week on Friday at a yield of 4.51%. Once again, as has been the case for weeks and weeks rates traded in about a 10-15 basis points range. No doubt this can’t continue forever but if it did maybe it wouldn’t be so bad.
The big economic news for the week will be the consumer price index (CPI) release as well as the producer price index (PPI) on Wednesday and Thursday. Now we would normally think this is a time for some potential big interest rate moves–but who really knows anymore.
The Federal Reserve balance sheet fell by $1 billion last week as we knew it would after multiple large drops in previous weeks.
$25 preferred shares and baby bonds, once again, moved little last week. Just like interest rates–shares can’t get any real juice in either direction. The average share moved higher by 4 cents, investment grade issues moved 5 cents higher, banks were up by a 3 cents, CEF issues by 2 cents as were mREIT issues. All things considered not a bad week.
Last week we had one new income issue sold as PennyMac Mortgage Investment (PMT) sold a 9% senior Note issues.
One item that may not be much discussed until occurs is a trade deal with India. Seems from what have have read likely to occur soon, e.g. before end of month if not sooner. Am curious its impact.
Don’t hold your breath “trade deals” take time and patience, every company in every industry has to have its lobbyist hand shake and then some to get a trade deal through. I would not trust this regime to provide transparency only more baloney.
Phased agreements can and have happened more quickly. So we will see, but remain hopeful. E.g. Economic Times had good update. As aside, interesting how politics and a political prism of perception can affect virtually all topics. Now frankly sorry for posting.
Tacitus, keep posting, just ignore that clown
TiME will tell….
Phased agreements meaning they will be phased in over time or small steps rather than one complete package? If the latter, it sounds like something the administration would favor as a way to give the appearance of progress.
I can see India getting punished ( or additional leverage being applied) over allying with Apple to make iPhones, etc
Might be, Gary. I suspect that a trade deal with India would help put more pressure on China – which is Trump’s main target (of the moment).