Leader Week in Review
October 22, 2014
Economic Data Releases:
Weekly Market Action:
Volatility in the Treasury market surged last week before
settling back down in the first half of this week (see chart 1). During trading on Wednesday, September 15th, the benchmark 10 year yield opened around 2.20%, dropped a stunning 37 bps from peak to trough, only to recover to 2.14%. Since then, the Treasury curve has steadily inched higher. In credit, High yield spreads have narrowed roughly 60 bps while Investment Grade spreads are flat.
After an increase in Q2, inflation slowed in Q3 (or was flat depending on your measure of choice, see chart 2). However, Core CPI showed some signs of life in September, so watch to see if this gets reflected in Core PCE when released on 10/31.
Upcoming Economic Data Releases: