Source: US Dept. of Treasury End of Day
• Treasury yields rose over the week as the two-year Treasury note increased by two basis points to 0.15% while the five-year note increased by eight basis points to 0.30%.
• Lawmakers went into recess with out a stimulus deal in place and they are not expected to reconvene until after Labor Day, the lack of a finalized relief package is sure to dampen upcoming economic activity and any momentum the recovery has built.
• The Fed has not shifted from its lead footed, policy stance despite decreasing initial claims and CPI posting back to back monthly gains of 0.6%. Yearly CPI at 1.6%, is still well below the Fed’s target and the presence of ongoing deflationary risks coupled with significant economic uncertainty does not warrant a shift in policy anytime soon.
