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Weekly Market Update, May 24, 2021

General Market News 

  • The yield curve ticked lower on the week as investors digested the most recent inflationary data and debated future inflation expectations. The 10-year Treasury yield opened Monday morning at 1.62 percent, only slightly lower than last week’s open of 1.63 percent. The 30-year yield opened at 2.31 percent, down 4.1 basis points (bps) from last week’s open of 2.35 percent. On the shorter end of the curve, the 2-year opened at 0.16 percent, just 0.6 bps more than last week’s open.

Weekly Market Update, May 17, 2021

General Market News

  • The yield curve moved modestly higher on the week as inflationary data came in above economists’ expectations. The 10-year Treasury yield opened Monday morning slightly higher than 1.64 percent, up from last week’s open of 1.58 percent. The 30-year opened at 2.35 percent, up 7.2 basis points (bps) from last week’s open of 2.28 percent. On the shorter end of the curve, the 2-year opened at 0.15 percent. just 0.6 bps more than last week’s open.

Weekly Market Update, May 10, 2021

General Market News  

  • The 10-year Treasury yield opened Monday morning at 1.57 percent, down from last week’s open of 1.63 percent. The 30-year opened at 2.28 percent, down 1.7 basis points (bps) from last week’s open of 2.30 percent. On the shorter end of the curve, the 2-year opened at 0.15 percent—1.3 bps less than last week’s open.

Are We at the Beginning of the End of the Pandemic?

April started with what looked like another wave of infections. By the end of the month, however, both case growth and positive test rates returned to recent lows. With vaccinations now hitting a substantial part of the population, the virus looks to be controlled. Medical risks remain, particularly concerning whether and when we hit herd immunity. Still, we’ve made significant progress, and the risks are likely to keep declining further over the next month.

Weekly Market Update, May 3, 2021

General Market News    

  • The 10-year Treasury yield opened Monday morning at 1.59 percent—just 3.4 basis points higher than last week’s open of 1.56 percent. The 30-year yield opened at 2.27 percent, up from last week’s open of 2.24 percent. On the shorter end of the curve, the 2-year remained flat at 0.16 percent.

Weekly Market Update, April 26, 2021

General Market News

  • The yield curve saw little movement last week ahead of the Federal Open Market Committee (FOMC) meeting this Wednesday. The 10-year Treasury yield remained flat, opening the week at 1.59 percent and closing roughly 2 basis points (bps) lower at 1.57 percent. The 10-year opened at 1.60 percent on the 26th. The 30-year opened this week at 2.27 percent after opening last week at 2.28 percent. On the shorter end of the curve, the 2-year opened at 0.16 percent, just one-tenth of a basis point higher than last week’s open.

Weekly Market Update, April 19, 2021

General Market News

  • We saw mild flattening of the yield curve last week as longer-dated yields declined. Despite positive economic data, the drop occurred as foreign buyers, particularly from Japan, purchased bonds and drove yields down. The 10-year Treasury yield remained flat, opening the week at 1.66 percent and closing 9 basis points (bps) lower at 1.57 percent. The 10-year opened just shy of 1.61 percent on the 19th, eroding part of last week’s move. The 30-year opened at 2.29 percent, down roughly 5 bps from last week’s open. On the shorter end of the curve, the 2-year Treasury opened at 0.16 percent, increasing just two-tenths of a basis point.

Weekly Market Update, April 12, 2021

General Market News

  • The 10-year Treasury yield remained flat last week. On Monday morning, it opened just one-tenth of a basis point higher than last Monday’s open. The 30-year came in at 2.34 percent on Monday, down just two-tenths of a basis point from last week’s open. On the shorter end of the curve, there was a slight decline in yields after Federal Reserve Chair Jerome Powell’s 60 Minutes interview, in which he stated he expects rates to remain low through 2021. The 2-year opened last week at 0.18 percent and came in at 0.17 percent on Monday morning.

Medical Risks Stabilize as Economy Continues to Improve

Over the past two weeks, the medical news began to deteriorate as cases of COVID-19 and positive test rates went back up. Concerns existed as to whether the worsening numbers were a signal of another surge of the pandemic. But recent medical and economic data indicate that a significant fourth wave is not occurring. Although case growth is slightly above recent lows, it has stabilized despite the continued reopening of our economy and the spread of more contagious variants of the virus. Continued progress on the vaccination front is supporting the battle against the pandemic. Although medical risks remain, they are less significant than they were two weeks ago, and they’re dropping every week.

Understanding the American Rescue Plan Act of 2021

On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (“the Act”) into law, with large portions of the bill acting as an economic stimulus for individuals and businesses affected by the COVID-19 pandemic. At $1.9 trillion in total expenditures, the bill contains provisions pertaining to a variety of areas. This summary is intended to address only the critical provisions for individuals and small businesses.