Weekly Economic Update: July 6th, 2020
• Bond yields remained constant over the week as the two-year Treasury note declined by only one basis point to 0.16% while the five-year note went unchanged at 0.30%.
• Equities rallied higher on more upbeat employment numbers as well as an outperforming ISM manufacturing index that moved back up to what is considered an expansionary level.
• Government aid aimed to help laid-off workers and state and local governments is set to end at the end of July and lawmakers are not yet in agreement on any continuing fiscal support.
• While employment numbers are impressive at first glance, it should be noted that only one third of the jobs lost in March and April have been recovered and with virus cases surging and states pressing pause on lifting restrictions, the recovery is set to become increasingly difficult.