Stubbornly high inflation has kept the Federal Reserve on an aggressive rate-hiking path, driving up Treasury yields and borrowing costs, while reviving concerns about the sustainability of America’s nearly $32 trillion in public debt as interest payments rise. Federal Reserve chairman Jerome Powell’s remarks on Tuesday and Wednesday before Congress—that the central bank might hike…
Rising Treasury Yields Revive Fears About Soaring Interest Payments, Sustainability of Public Debt
What’s Going on With Mortgage Rates in 2023?
With the 2022 mortgage rate peaking at 7.12 percent and inflation at 6.5 percent by the end of December 2022, it was a tumultuous economic year. The hot housing market slowed down in many markets primarily due to high mortgage rates. But what will 2023 bring for mortgage rates? Is there relief on the way?…
The Reason That Good Economic News Is Bad for the Market
Commentary Many of you may have noticed a recent trend whereby good economic news causes the stock market to fall. Theoretically, higher than expected gross domestic product (GDP), or lower than expected unemployment, would be good for the economy, corporate earnings, and the stock market. During normal times, and over the long run, that’s true….
The Strong Dollar Is a Risk to Corporate Profits
Commentary The strong dollar remains a risk to corporate profits and asset prices as the impact on the global economies grows. While many commentators argued the dollar would go bust due to the excessive debt levels in the United States, such has hardly been the case. In 2022, as the U.S. economy is the “cleanest…
US Treasury Yields Bounce and Stock Futures Mixed at Start of Likely Volatile Week of Trading
Longer-dated U.S. Treasury yields rebounded and Wall Street futures were mixed in early trading Monday, with some investors apparently poised for more Omicron dip-buying after uncertainty over the new variant last week sparked sharp selloffs in risk assets and fueled interest in havens like government securities. A slightly more upbeat mood was evident early Monday,…
Treasury Yields Rise, Wall Street Futures Up, Ahead of Producer Price Inflation Data
Long-dated U.S. Treasury yields rose on Friday ahead of the release of an index that will show the extent of producer price inflation and a day after major Wall Street equities indexes closed down despite encouraging unemployment claims data. The yield on the benchmark 10-year Treasury note rose 2.7 basis points to 1.329 percent, as…
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