US Dollar Index and Treasury Yields Are Strong in the Early Hours
At 7:05 AM EST on October 20, 2017, the US Dollar Index was trading at 93.48—a rise of 0.23%.
Investors in the bond market remain anxious that there has been no clear signal from the Fed.
Equity markets consider rate hikes to be negative on stocks, but that doesn’t seem to be the case now, likely because the rate is only now being “normalized.”
As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading.
In 2016, Puerto Rico defaulted on constitutionally guaranteed GO (general obligation) bonds. On May 3, 2017, Puerto Rico filed for Title III bankruptcy.
Compared to a corporate bond with a similar credit rating, muni bonds are less likely to default while offering modest yields.
In this series, we will shed light on Moody’s recent data report, US Municipal Bond Defaults and Recoveries, 1970–2016. Muni bond prices sparked in 2016, especially when President Trump announced his infrastructure spending plans.
The performance of municipal bonds has fallen since the 2016 election, as President Trump’s tax reform and infrastructure spending plans have caused some concern among investors.
The announcement of the GOP tax reform plan added to the pressure on bond markets.
The US Dollar Index regained strength in September and rose for four consecutive trading weeks. However, the US Dollar Index opened lower this week.
The carnage in bond markets (BND) that was unveiled after the FOMC September policy statement continued last week as well.
In September, Fed Vice Chair Stanley Fisher submitted his resignation, citing personal circumstances, and will step down in mid-October.
Bullard said that the current growth rate in the US economy is likely to remain consistent with recent quarterly growth—near the 2% mark.
In the long run, Williams said it would be difficult to predict how markets would react to the Fed’s balance sheet unwinding program.
In her first speech since the FOMC’s surprise September policy statement, Fed Chair Janet Yellen sounded dovish in her assessment of the US economy.
The US Dollar Index started this week on a stronger note and rose in the first three trading days of the week. It’s stable in the early hours on Friday.
The US dollar (UUP) was being written off before the beginning of September, as the Fed was expected to stay on hold and other major central banks were expected to start…
The FOMC’s (Federal Open Market Committee) meeting on September 20 changed the outlook for bond markets (BND). It suggested that the Fed could be looking at another rate hike by…
Average weekly unemployment claims are among the indicators used in the Conference Board Leading Economic Index (or LEI). Weekly unemployment claims, which are seasonally adjusted, give an idea of unemployment…
The services provided by municipal borrowers have always been, and remain, vital to our everyday life. The need to protect these services from possible disruption has become ever more important.