1 Mo 5.40   |   2 Mo 5.46   |   3 Mo 5.50   |   4 Mo 5.45   |   6 Mo 5.37   |   1 Yr 5.09   |   2 Yr 4.69   |   3 Yr 4.43   |   5 Yr 4.24   |   7 Yr 4.22   |   10 Yr 4.22   |   20 Yr 4.47   |   30 Years 4.36   |  

Source: US Dept. of Treasury End of Day

Market Updates

Weekly Economic Update: April 29th, 2019

• The two-year Treasury note declined by ten basis points in yield last week following the GDP release for the first quarter. First quarter GDP came in stronger than expected boasting a growth rate of 3.2% which was influenced by several factors that overstated its reported strength. Taking these onetime factors out of the equation results in a growth rate closer to 1.3%, which is half of the increase in GDP that occurred during the fourth quarter of 2018.

• Retail sales perked up during March staging the biggest monthly increase in eighteen months. This strong report should add momentum to the Personal Consumption report on Monday.

• Equity investors appear to be looking through the headline slowdown in GDP, focusing on encouraging earnings reports, a possible trade deal with China, the sustained strength in the job market and the Fed’s promise to forego further interest-rate hikes. The S&P 500 rose 1.20% last week.

• Inflation continues to stay well contained below the Fed’s inflation target. Inflation will need to rise above the Fed’s target of 2.0% to even begin considering an increase in the fed funds rate. A sustained increase in inflation above the Fed’s target rate is a low probability event over the next several quarters.

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