FinSer 

 Financial Focus

September 16, 2021 
 

     GOOD MORNING! Oil rose to its highest level since late July on a sizeable drawdown of crude inventories, still production and refining facilities struggle to get back on line following inclement weather and Europe scrambling for energy commodities as natural gas supplies and wind power hasn’t met their demands, especially with winter coming. That helped the energy companies to lift stocks and, in turn, raised risk-on sentiment. Higher commodity and stock prices weighed on Treasuries and had yields edging up. With the industrial production/capacity utilization data coming in close to expectations and an upside surprise in the NY Fed Empire State Manufacturing Index may have also weighed on Treasury prices.
     Early trading is seeing US stock index futures little changed, the dollar moving higher and a mushy Treasury market with yields slightly up and holding within its narrow trading range that has been in place since early August. This comes ahead of some relevant data: weekly jobless claims and August’s retail sales. The latter has a history of surprises and large revisions, but the markets will react anyway in the now. Even as the markets get past this week’s data, they will likely stay choppy and, perhaps, off balance with proposed legislation, including the debt ceiling. The odds have risen slightly higher that there may be a government shutdown on October 1.

       
GENERAL
TODAY             
PREVIOUS        
FED FUNDS
0.0% to 0.25% 0.0% to 0.25%
1 MONTH LIBOR
0.08463% 0.08375%
S & P 500
4480.70 4443..05
OLD
1780.10 1803.30
YEN
109.41 109.27
EURO
1.1770 1.1828
WEST TEXAS CRUDE
72.61 70.46
T-BILLS
YIELD                
YIELD                 
3 MONTH
0.03 0.03
6 MONTH 0.04 0.04
1 YEAR
0.06 0.06
T-NOTES / BONDS
YIELD                 
YIELD                  
2 YEAR
0.21 0.20
3 YEAR 0.44 0.43
5 YEAR 0.81 0.78
10 YEAR
1.31 1.27
30 YEAR 1.88 1.83

                                                                                                 Data Source: Bloomberg Financial Markets