1 Mo 5.56 | 2 Mo 5.61 | 3 Mo 5.56 | 4 Mo 5.61 | 6 Mo 5.53 | 1 Yr 5.46 | 2 Yr 5.04 | 3 Yr 4.83 | 5 Yr 4.62 | 7 Yr 4.63 | 10 Yr 4.59 | 20 Yr 4.90 | 30 Years 4.71 |
Market Updates
Weekly Economic Update: May 17th, 2021
• Yields on the front end of the curve remained unchanged as the two-year Treasury note remained constant at 0.15% while medium to longer tenures increased slightly with the five-year Treasury note increasing by three basis points to 0.81%.
• More hot inflation readings spooked equity markets earlier in the week with Core CPI registering a 0.8% increase and the Producer Price Index registering a 0.6% increase.
• A closer look into the Core CPI reading warrants less shock as nearly 40% of the increase was attributable to a jump in prices of used cars stemming from retention of rental fleets as well as chip shortages constraining new car production.
• Prices still have room to rise as key service industry prices are well below their pre-pandemic levels—prices of hotel bookings are still down 6% and airfare is still down 18% compared to February 2020 levels.