FinSer 

 Financial Focus
November 23, 2022 
 

GOOD MORNING! As the dollar gave up recent gains, the asset markets-stocks, bonds, commodities- did a melt-up. Stocks seemed optimistic on retailers’ earnings beat and improved outlook, on balance, going into the holiday shopping season. The S&P grinded its way back to the 4,000 level. The financial press said that Fed officials’ comments supporting moderation in the upcoming rate hikes helped underpin the risk on sentiment in equities and Treasuries. This doesn’t sound quite true as the Fed comments weren’t breaking news yesterday and has been around since the November 2 FOMC meeting. If anything, the markets had a feel of short covering in light volume. Final buyers turned their noses up at the Treasury attempting to sell $35 billion new 7-year T-notes and 22 billion 2-year FRN, forcing the primary dealers to pick up the slack. Not wanting to take a hickey on the issues, they tried (and successfully) to spin their way to minimize losses.  “Twas the night before….” Never mind, wrong holiday. The markets are quiet and little changed before a slew of releases and Treasury bill issuance. One day before turkey day, the markets will digest weekly mortgage applications data, weekly jobless claims, preliminary October durable and capital orders, preliminary November manufacturing and service PMIs from the S&P Global Group, October’s new home sales and the minutes of the November 1 – 2 FOMC meeting. The Treasury Department will be peddling $55 billion 4-week, $50 billion 8-week and $33 billion 17-week T-bills. The 4-month T-bill is a relatively new one and the sizes on the 4- and 8-week Bills are creeping up. Does somebody want to tell us what’s up with that? It is helping the yield curve inversion to pivot steeper. Have a Happy and Safe Thanksgiving.


GENERAL
TODAY             
PREVIOUS        
FED FUNDS
3.75% to 4.00% 3.75% to 4.00%
S & P 500
4003.58 3949.94
GOLD
1752.40 1763.20
YEN
141.45 141.26
EURO
1.0314 1.0262
WEST TEXAS CRUDE
80.95 79.73
T-BILLS
YIELD                
YIELD                 
3 MONTH
4.24 4.25
6 MONTH 4.68 4.64
1 YEAR
4.77 4.69
T-NOTES / BONDS
YIELD                 
YIELD                  
2 YEAR
4.53 4.49
3 YEAR 4.30 4.26
5 YEAR 3.95 3.92
10 YEAR
3.76 3.78
30 YEAR 3.81 3.88

                                                                 Data Source: Bloomberg Financial Markets