We knew bonds would be skittish about Treasury auctions this week, but the defensiveness began early owing to a big glut of corporate bond offerings . The damage was minimal, all things considered, with MBS only losing an eighth of a point as of 4pm ET and 10yr yields up 2bps to 1.60%. [
30 year fixed 3.03%]
emphasis added
Tuesday:
Small Business Optimism Index for April.
• At 10:00 AM,
Posted by
Calculated Risk on
Inflation remained front and center on Wall Street as fears the Federal Reserve may be forced to raise interest rates sooner than telegraphed keep high-growth, large-cap technology stocks under pressure.
Specifically, economists are worried about shortages on the supply side of the U.S. economy: A lack of commodities, labor and other inputs to produce the totality of all the goods and services demanded by other businesses and American consumers.
The Labor Department s April jobs report released on Friday initially relieved some investors of their Fed fears with a far-weaker-than-expected 266,000 payrolls added. The kneejerk reaction on Wall Street assumed that the economy added far fewer jobs because employers didn t want to hire workers in the numbers expected.
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