Leader Week in Review - May 1st, 2015
Economic Data Releases:
The move in safe-haven assets has been swift and painful – a few comments here by Jamie Dimon on Treasury market liquidity, a few non-comments there by the FOMC statement coupled with a few bond market “Kings” discussing shorting German bunds have sent yields skyward. Credit spreads outperformed quite handily with Inv. Grade spreads only widening 2 bps and High Yield spreads actually tightening 6 bps during the week.
The US economy had a dreadful Q1 – cold weather and the LA port shutdown led to a 0.2% GDP print. However, similar to last year, we expect the economy to rebound back to trend. Just look at how much of an outlier the March Non-Farm Payrolls was vs. Initial Jobless Claims – one of the leading indicators for the labor market (see chart 2).
Upcoming Economic Data Releases: