Published Date 6/6/2022
Friday stock indexes were under pressure, this morning some improvement in the futures markets; the 10 yr. at 8:30 am ET 2.98% +3 bp, FNMA 4.0 30 yr. coupon opened down 11 bps.
The week starting with not a lot of news. The economic calendar has just one key report this week, and its on Friday when another inflation report hits, May CPI. Expectations are for continuing moderation, since March inflation has moderated, still high by historical standards but continuing increases have ebbed.
At 9:30 am the DJIA opened +209, NASDAQ +210, S&P +44. 10 yr. note 2.97% +3 bps. FNMA 4.5 30 yr. coupon -9 bps and -13 bps lower than at 9:30 am Friday.
The ECB will meet this week (Thursday), policymakers will this week ask President Christine Lagarde to use stronger language to signal that fragmentation won’t be allowed to happen and the borrowing costs of more vulnerable countries like Italy and Spain will be contained, according to people familiar with the matter. The ECB will lift the deposit rate — now at -0.5% — by a quarter-point in July and again in September, the poll showed. While in line with President Christine Lagarde’s vow to end subzero borrowing costs in the third quarter, that’s less aggressive than the path sought by officials. The ECB, unlike the Fed has been slow to increase rates; inflation in the region, 8.1%.
No breaking news today.
This Week’ Calendar:
Tuesday,
8:30 am April US trade deficit (-$90.2B)
1 pm $44B 3 yr. note auction
3 pm April consumer credit (+$31.7B)
Wednesday,
7 am weekly MBA mortgage applications
1 pm $33B 10 yr. note auction
Thursday,
8:30 am weekly jobless claims (210K)
1 pm $19B 30 yr. bond auction
Friday,
8:30 am May CPI (+0.7% m/m from 0.3% in April; yr./yr. +8.2% from 8.3%; core CPI +0.5% from +0.6%, yr./yr. +5.9% from +6.2%)
10 am U. of Michigan consumer sentiment index (58.5 from 58.4)
2 pm May Treasury budget (-$275B)
Source: TBWS
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