TEFF

yields up...has the QE wonder last its zeal!

PMI bouncing around...reflecting a continuing mixed bag of economic data - is this the new normal of economic cycles!

along with a "Quote for the week": The next major theme is stagflation — this will be the legacy of the Bernanke regime. You cannot keep real short-term rates negative for this long in the face of even modestly positive real economic growth without generating financial excesses today and inflationary pressures in the future. (D. Rosenberg)

 

·  ECON: ISM Manufacturing Lowest Since June 2009                                                                                                                                                                        

- Headline PMI 49.0 vs 50.7 forecast
- New Orders 48.8 vs 52.3 previously
- Employment 50.1 vs 50.2 previously
- Manufacturing Activity lowest since June 2009
- First Contraction Since November 2012

US Treasury Yields

Name	Yield		1 Month	1 Year
US Treasury 2 Year Yield	0.30%		+8	+5
US Treasury 5 Year Yield	1.05%		+33	+44
US Treasury 10 Year Yield	2.12%		+42	+70
US Treasury 30 Year Yield	3.31%		+36	+79

Last week’s wild ride in bonds featured volatility every day but Thursday. On Friday, the ten-year Treasury’s yield soared to over 2.20% by early afternoon before closing at 2.12%. The updraft in yields has permeated the market, pushing up yields on most securities to their highest levels in over a year and pushing up mortgage loan rates. Mortgage spreads generally stabilized last week but were wider on the month. Mortgages have given up all of their spread tightening that occurred beginning in August of 2012, just before the Fed began their latest mortgage purchase program. Mortgage rates are up to their highest rates since last summer.  (The Market Today ONLINE)

Five-year Treasury Yield