With 11 months gone, 2016 corporate bond issuance is up 0.8 percent year-over-year to $1.45 trillion. Of this, investment-grade is up 4.7 percent to $1.24 trillion, while high-yield shrunk 17.1 percent to $214.1 billion. This is based on the actual … Continued
NYSE margin debt dropped 3.4 percent month-over-month in October to $484 billion; the S&P 500 fell 1.9 percent in that month. Debt rose 6.3 percent in September to a 15-month high $501.1 billion. Margin debt peaked at $507.2 billion in … Continued
Since the U.S. presidential election through the intra-day high last Thursday, 10-year T-yields jumped 63 basis points, and two-year yields 27 basis points. From the July 6 all-time low of 1.34 percent, 10-year yields surged 115 basis points. Riding on … Continued
Following futures positions of non-commercials are as of November 29, 2016. 10-year note: From the July 6 (this year) all-time low of 1.34 percent to the Thursday high of 2.49 percent, the 10-year Treasury yield jumped 115 basis point in … Continued
U.S. corporate profits adjusted for inventory and depreciation in 3Q16 grew the most quarter-over-quarter since 2Q14. They rose 6.6 percent to a seasonally adjusted annual rate of $2.15 trillion, breaking five consecutive quarters of year-over-year decline (Chart 4). Profits peaked … Continued
Following futures positions of non-commercials are as of November 22, 2016. 10-year note: Like that, 10-year Treasury yields rallied north of 100 basis points in four and a half months – from the all-time low 1.34 percent on July 6 … Continued
Price is the final arbiter … is an often-quoted axiom in finance. Has truth in it. For a trend to establish itself, price has to cooperate. As long as this continues, there is no use fighting it. Of course, all … Continued
U.S. sales of homes – both new and existing – are at/near cycle highs. This amidst personal incomes that are struggling to rise with surging home prices. Against this background comes the recent backup in mortgage rates, particularly post-Trump victory. … Continued
Post-Trump victory, the Treasury yield curve has moved up as well as steepened, with the 10-year yield rising 47 basis points to 2.34 percent. Yields have risen one full point since the July 6th all-time low of 1.34 percent. Inflation … Continued
Following futures positions of non-commercials are as of November 15, 2016. 10-year note: Post-Trump victory, the bond market has swiftly priced in higher inflation. The U.S. economy is in its eighth year of expansion, although growth remains subdued. On a … Continued