Weekly Economic Update: January 11th, 2021
• Bond yields further out on the maturity spectrum moved higher during the week as the five-year Treasury note increased by twelve basis points to 0.48% while the two-year note increased by only two basis points to 0.14%.
• Non-farm payrolls fell by 140 thousand in December, marking the first decline since the recession started in March.
• With democrats now in control of the Senate, equity markets pushed higher on prospects of a larger and more immediate additional stimulus package.
• Stimulus passed in December is being distributed without a second to waste as vaccine rollouts have been slower than expected, and while January is proving to be the worst month of the pandemic with cases and hospitalizations surging.