FinSer 

 Financial Focus

January 20, 2021 
 

    GOOD MORNING! Janet Yellen, the nominee for Secretary of Treasury, told Senators that the government needed to act big and act now. She also called for a minimum wage of $15/hour, and said job losses from would be minimal. Additionally she said that now is not the time to raise taxes, no worry on the ballooning deficit because the interest on it was low due to near zero rates, but in the longer run wealthy Americans and corporations would have to pay their fair share. Also, she said she would explore the government issuing a 50-year bond and promised she would appoint a senior climate official at the Treasury Department. It became obvious very quickly to the markets that she would say anything that she thought somebody would want to hear. Pretty much like when she was Chairwoman of the Federal Reserve. Stocks moved very little from pre-opening levels. Treasury prices did come off their early morning lows, partially due to corporate issue underwriters buying back hedges, but the long end lagged on the thought of a 50-year T-bond.
     Focus will stay on Washington D.C. and the inauguration today. Ahead of whatever evolves there US stock index futures have floated modestly higher in hopes of more stimulus. Treasury yields, at least in very early trading, are staying attached at the hip of equities. Commodities are split with agriculture and food stuffs lower while energy and metals are higher. According to Bloomberg soybeans and corn are ebbing lower on beneficial rains in South America. The economic calendar is light and housing sector oriented with the latest weekly mortgage applications data and the National Association of Home Builders (NAHB) Housing Market Index. In light of Yellen’s mention of a 50-year Treasury bond, the $24 billion auction of 20-year T-bonds could prove interesting. Expect the markets to stay whippy.                                                             


 
TODAY             
PREVIOUS        
FED FUNDS
0.0% to 0.25% 0.0% to 0.25%
1 MONTH LIBOR
0.13088% 0.12950%
S & P 500
3798.91 3768.25
GOLD
1849.50 1843.60
YEN
103.82 103.98
EURO
1.2112 1.2130
WEST TEXAS CRUDE
52.98 52.36
T-BILLS
YIELD                
YIELD                 
3 MONTH
0.07 0.07
6 MONTH
0.08 0.08
1 YEAR
0.09 0.09
T-NOTES / BONDS
YIELD                 
YIELD                  
2 YEAR
0.13 0.13
3 YEAR
0.20 0.21
5 YEAR
0.45 0.47
10 YEAR
1.09 1.11
30 YEAR
1.84 1.86

Data Source: Bloomberg Financial Markets