Tag Archives: interest rates

Today’s Economic Indicators not moving the dial on yields.

The yield on the S&P/BGCantor Current 10 Year U.S. Treasury Index since its step down on May 13th as a result of Retail Sales has remained in a range of 2.48% to 2.58%.  There are a number of economic releases scheduled to follow the U.S. Memorial Day Holiday.  Today’s reporting of Durable Goods Orders (0.8% versus Read more […]

Lower Expectations Meant Lower Rates, And A Continued Search for Yield

Investor’s search for yield continued at the very start of last week’s heavy economic calendar.  The Retail Sales numbers continued the trend of lower yields as the number released (0.1%) was weaker than the 0.4% surveyed.  The news started a process of investor reassessment of economic growth expectations not only domestically but globally. Year-to-date the Read more […]

Preferred Stock Returns 9.61% (TR)

The U.S. preferred stock market is exhibiting the qualities of the hybrid equity / bond like structure they are.  Through May 15th, 2014, the S&P U.S. Preferred Stock Index has recorded a year to date total return of 9.61% mirroring more the bond market than the stock market in this low rate environment.  The index Read more […]

Will This Week’s Upcoming Economic Signals Dampen the Performance of Longer Maturity Investments?

The week ahead should be a busy one with a number of economic indicators scheduled for this week.  Monday starts with a less relevant number, the Treasuries Federal Budget Summary ($106.9bn actual versus $114bn, expected) leading into the more important April Retail Sales (0.4% expected) which after a revision on last month’s number up to Read more […]

The Fed Views a Stronger Economy, Preferred and Investment Grade Corporate Bond Indices Going Strong

Yields on the 10-year Treasury continued lower last week as measured by the S&P/BGCantor Current 10 Year U.S. Treasury Index.  Friday’s 2.59% is one basis point off from this year’s low of 2.58% of February 3rd.  The index recorded a 2.59% in spite of the fact that the April U.S. Unemployment rate reached a low Read more […]

Index of Leading Indicators Kicks-Off the Week

The yield on the 10-year Treasury as measured by the S&P/BGCantor Current 10 Year U.S. Treasury Index suddenly moved higher to 2.78% from the previous day’s 2.64%.  Thursday’s upward movement before the Good Friday Holiday was a result of negotiations over the Ukraine crisis possibly resulting in an accord to defuse the conflict. Yields in Read more […]

Recent Interview: Commodities To Upstage Stocks

I thought you might be interested in a recent article, Gunzberg: Commodities To Upstage Stocks, written by Cinthia Murphy on March 11, 2014 on etf.com. Many of the discussion points cover the concepts from one of my prior posts, COMMODITY COMEBACK.   Commodities markets have been major underdogs relative to record-breaking U.S. equities for much of the past six Read more […]

COMMODITY COMEBACK

It is no surprise that now might be the perfect environment for brewing commodities.   The S&P GSCI was up 4.5% in February and was in backwardation for the first time in February since 2004. In 2004, the S&P GSCI returned 17.3%. 22 of 24 commodities in the S&P GSCI were positive in February. All 5 sectors were positive, led by agriculture, Read more […]

Inflating Fears of Inflation

With all of the monetary policy including the unprecedented quantitative easing, the impacts have been different than expected. Assets became hyper correlated, the dollar didn’t drop relative to other currencies and inflation never showed up. Recently, I had the privilege to sit down with Bluford Putnam, Managing Director and Chief Economist, of our partner, CME Group, to discuss Read more […]

The New Fed! Yellen’ About Commodities

As we all know by now, Ben Bernanke is gone. He was focused on not having a depression on his watch so he pulled out all kinds of never-before-tried policy tools. Consequently, Janet Yellen will have to cope with the unintended consequences of QE — namely big unrealized losses in the Fed’s bond portfolio.  Recently, I had Read more […]