FinSer 

  Financial Focus
May 20, 2024
          

     GOOD MORNING! The markets extended the previous week’s rally for the first 3 days of last week before stalling on Thursday and Friday. Treasury yields fell to key technical levels before retreating as Fed speakers continued to preach patience and higher for longer until they could get confidence that inflation was on a sustainable path lower. Key data showed CPI, retail sales and production moderated in April, which supported the Treasury market. Even with backing up in the latter part of the week, Treasury yields were 5 basis points or lower across the curve as it flattened. Stocks tended to follow market rates. Stocks went up as yields ebbed lower and faltered when yields edged up, but the Dow managed to close out the week at the 40,000 level and the S&P slightly above the 5300 level. Also screaming to new highs are the futures contracts on gold and copper.
      This week’s calendar will be somewhat thinner than last week’s. The highlight of releases will be new and existing home sales for April and the release of the minutes of the April 30 – May 1 FOMC meeting. There will be an abundance of Fed speakers during the early part of the week, but that will also thin out as Memorial Day weekend approaches. Stock index futures are slightly higher to start the say/week and Treasuries are little changed and mixed.

 

GENERAL
TODAY             
PREVIOUS        
FED FUNDS
5.25% to 5.50% 5.25% to 5.50%
S & P 500
5303.27 5297.10
GOLD
2439.70 2390.10
YEN
155.72 155.85
EURO
1.0872 1.0840
WEST TEXAS CRUDE
80.06 79.23
T-BILLS
YIELD                
YIELD                 
3 MONTH
5.39 5.38
6 MONTH 5.36 5.35
1 YEAR
5.11 5.10
T-NOTES / BONDS
YIELD                 
YIELD                  
2 YEAR
4.81 4.79
3 YEAR 4.60 4.57
5 YEAR 4.44 4.41
10 YEAR
4.42 4.39
30 YEAR 4.56 4.53
                                                         Data Source: Bloomberg Financial Markets