By: Dave Chenet, CFA, CAIA®
|Close||Weekly return||YTD return|
|US Treasury 10yr Yield||3.40%|
Source: YCharts, Yahoo! Finance, WSJ
Stock markets took a pause last week, posting the biggest five-day losses since mid-December, yet remain broadly positive on the year. The decline was largely due to dampened expectations of a Fed rate cut by year-end as Fed Chair Powell reiterated the committee’s expectations that policy would likely remain tight. As a result, the policy-sensitive 2 year treasury interest rate rose to 4.48%, its highest level since November and at levels close to multi-decade highs.
As we look forward to data for the week of 2/13-2/17, we keep an eye on continued corporate earnings as well as a much anticipated report on inflation due for release on Tuesday. Expectations are for CPI to have increased by 0.5% through the month of January with the year-over-year figure at 6.2% – a decline from the previous month.
Chart of the Week:
Despite high profile recent layoffs, the labor market remains on solid footing relative to pre-pandemic levels.
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