Presented by Matt Glova and the LifeTime Asset Management team:
May 26, 2020
The 10-year Treasury yield opened at 0.65 percent on Monday morning before bouncing up to 0.70 percent. The 10-year traded between 0.59 percent and 0.75 percent last week. The 30-year opened at 1.42 percent, and the 2-year opened at 0.18 percent—both higher than where they ended last week. There are some whispers of the Federal Reserve stepping up its bond buying activity to help keep rates lower.
May 18, 2020
Global equities moved lower this past week. Jitters surrounding the restart of the economy as well as increased tensions with China were potential reasons for the sell-off. Trade tensions with China flared as the U.S. placed new export restrictions on semiconductors and Huawei products. Beijing responded with threats to place restrictions on Qualcomm, Cisco, and Apple.
May 11, 2020
The 10-year Treasury yield spiked to 0.74 percent last week before dropping to 0.60 percent on Friday and opening at 0.68 percent on Monday. The 2-year yield opened at 0.15 percent, while the 30-year yield opened at 1.40 percent. April’s Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales will be released this week, giving us a better understanding of the pandemic’s effects on the economy and likely spurring some additional volatility.
May 04, 2020
On Thursday, March’s personal income and personal spending reports were released. Personal income fell by 2 percent during the month, against expectations for a 1.7 percent decline. Spending fell even further, with a 7.5 percent drop, against expectations for a more moderate 5.1 percent decline. This was the worst single month for spending growth on record, far surpassing the previous monthly record of a 1.4 percent decline back in November 2008.