Weekly Economic Update: May 18th, 2020
• Bond yields decreased slightly last week as the two-year Treasury note fell by one basis point to 0.15% while the five-year note fell by two basis points to 0.31%.
• Retail sales posted the largest monthly contraction on record dropping by 16.4%. Auto sales alone were down 12.4% and the industry’s outlook is grim as car makers face massive stockpiles of inventory coupled with no sales.
• The stage is being set for a sluggish recovery as industrial production plunged 11.2% in April and more and more companies announce cutbacks in investment.