Leader Week in Review
February 27th, 2015
Economic Data Releases:
Weekly Market Action:
Treasury yields are roughly unchanged over the last week due to a sharp sell-off on Monday while High Yield has rallied. The yield on the benchmark 10 year Treasury is up 12 bps from the low of the week on stronger than expected inflation and consumer spending data.
Core inflation measures have moderated recently as the drop in oil prices, while not directly included in the figures, has flowed through to other goods prices (see chart 1). Indeed, it is goods prices that have pushed inflation down as goods inflation has dropped sharply (see chart 2, orange line), while service prices have remained robust (blue line). A stabilization in goods prices – either from oil price stabilization throughput or a weaker dollar – should see inflation move higher.
Upcoming Economic Data Releases: