Leader Week in Review
October 3, 2014
Economic Data Releases:
After precipitous sell-off in both Investment Grade and High Yield Credit, spreads stabilized last week albeit at much elevated levels from the year's lows (see chart 1). A very heavy corporate supply calendar in September-$47.5 billion vs. $28.9 billion per month average year-to-date -- alongside weakness in other risk markets contributed to the poor performance for the month. Treasury yields ended the week lower despite a strong jobs report on Friday.
Alongside the September jobs last week, we saw the U-3 Unemployment rate drop below 6%. Historically when the unemployment rate has dipped below this level and approached full employment, we have seen accelerating wage growth (see chart 2).
Upcoming Economic Data Releases: