01/19/2023
Market Commentary - January 19, 2023
The Market opened today's session with treasuries lower across all maturities. The 10-year Treasury yield is currently at 3.4042, 3.44 bps higher than the prior closing of 3.3698. A rally driven by optimism over China’s economic reopening has fizzled as recent data signal a slowdown. Meanwhile, St. Louis Fed chief James Bullard and Cleveland Fed President Loretta Mester stressed the need to keep policy restrictive for longer. US stocks fell as concern over an economic slowdown weighed on risk sentiments. The S&P 500 fell 0.50%, and the Nasdaq 100 fell 0.50%. Treasuries retreated, and the euro traded firmer after the head of the European Central Bank reaffirmed her aggressive stance. The dollar weakened. Applications for US unemployment benefits unexpectedly fell last week, sliding to the lowest level since September. Initial unemployment claims decreased by 15,000 to 190,000 in the week ended Jan. 14. New US home construction declined for a fourth-straight month in December, wrapping up a disappointing year for an industry that saw annual housing starts fall for the first time since 2009. Residential starts decreased 1.40% last month to a 1.38 million annualized rate, a five-month low. New construction fell 3.00% in 2022 after surging the prior year. West Texas Intermediate crude rose 0.70% to $80 a barrel. Gold futures rose 0.60% to $1,919 an ounce. The curve has bear-flattened with the UST 10-Year yield up by 3.44 bps. Read more at https://lnkd.in/d-az64EC
