FinSer 

 Financial Focus

January 23, 2020 

 

GOOD MORNING!    The Treasury market stayed firm, underpinned by reports that the deadly Chinese is infecting more than previously believed, is mutating, spreading and the death toll is climbing.  It also took stocks off their tops and weakened the energy and industrial metals sectors of commodity indices on fear it could lead to a contraction of business activity in the world’s second largest economy and be a further headwind to an already vulnerable global economy.

    While the hedge fund, financial institutions and political leaders are talking (at least in public and for the TV cameras) green, stocks and commodities are in a sea of red.  The threat of a pandemic has these markets not feeling too good on the concern of the potentially negative impact on demand.  The World Health Organization will meet today to consider declaring a public health emergency.  Oil is also being pressured by a weekly report that showed a large build-up in crude inventories.  Emotions (fear and greed, mostly fear currently) seem to be in charge of the markets, with Treasuries being the current favorite of traders and investors, sending yields lower.  With that and Congress’s dysfunction on display, economic reports, 4- and 8-week T-bill auctions with also a 10-year Treasury Inflation Protected Security (TIPS) auction will provide little to no distraction.   Today’s data line-up has the latest weekly jobless claims statistics, December’s Leading Economic Index and the Kansas City Fed Manufacturing Activity Index.

                                                         

GENERAL
TODAY             
PREVIOUS        
FED FUNDS
1.50% to 1.75% 1.50% to 1.75
1 MONTH LIBOR
1.65950% 1.65338%
S & P 500
3321.75 3320.79
GOLD
1553.20 1555.80
YEN
109.60 109.98
EURO
1.1090 1.1079
WEST TEXAS CRUDE
56.74 58.34
T-BILLS
YIELD                
YIELD                 
3 MONTH
1.53 1.54
6 MONTH
1.54 1.54
1 YEAR
1.53 1.52
T-NOTES / BONDS
YIELD                 
YIELD                  
2 YEAR
1.51 1.53
3 YEAR
1.51 1.53
5 YEAR
1.56 1.58
10 YEAR
1.74 1.77
30 YEAR
2.19 2.22

Data Source: Bloomberg Financial Markets