Weekly Economic Update: April 24, 2023
• Yields finished the week higher with the two-year Treasury note rising by six basis points to 4.17% while the five-year note also advanced by six basis points to 3.67%.
• The regional banking crisis appears to have been an isolated event, however lingering effects will likely remain and continue to be felt by small businesses and consumers looking to refinance or acquire new debt.
• Markets have since diverted their attention to fiscal policy and the looming risk of another debt ceiling saga as newly auctioned Treasury bills and credit default swaps have begun to price in this risk.
• The Conference Board Leading Economic Index, which is composed of several forward-looking economic indicators dropped by 1.2% in March marking the largest decrease since April of 2020 when businesses across the globe were shuttered amidst a deadly pandemic, what’s more is this is the 12th consecutive drop – the longest streak since the onset of the Great Recession of 2008.