Treasuries ended the week flat after two big moves in opposite directions earlier in the week. The 10-year ended the week close to 2 percent while the rest of the curve ended the week flat, with the 2-year at 0.23 percent and the 30-year at 3.1 percent.
Europe was once again the lead story in the headlines and helped dictate equity market direction last week. The market experienced large swings, but the S&P 500 ended with a gain of nearly 1 percent.
The unexpected announcement by Greek Prime Minister Papandreou that he would put the European Union’s (EU) most recent bailout package to a referendum was not well received by equity markets and contributed to declines across the board last week.
Amid international and domestic pressures, Papandreou has agreed to step down as Greek prime minister. Opposition leader Antonis Samaras will lead a new interim unity government.
Equity markets posted strong gains across the board last week. The S&P 500 gained 3.79 percent.
Treasuries sold off throughout the week before turning around on Friday, as Italy sold 10-year debt at the highest levels on record. The risk is still in place, and investors jumped back into “safety” heading into the weekend. Read more now.
Economic reports have continued to show modest improvements in the economy. Better-than-expected manufacturing numbers and a surprise increase in housing starts appeared to boost market sentiment last week. Read more now.
Equity markets surged higher last week, led by technology and small-cap stocks. The S&P 500 gained 6.01 percent.
While the S&P 500 is still slightly in the red, both the Nasdaq and Dow Jones Industrial Average are back in positive territory for the year-to-date period. International indices and smaller-cap stocks have a larger hole to dig out of before they get close to breaking even. Read more now.
Look for the release of the Federal Open Market Committee (FOMC) minutes on Oct. 12 to help give us a sense of the Federal Reserve’s intentions and its assessment of the economic outlook.
Treasuries sold off last week on better-than-expected economic numbers and more positive news coming out of Europe earlier in the week. Read more now.
Equity markets moved slightly lower this week. Although the S&P 500Index (S&P 500) lost only 41 basis points (bps), there was significant intraday volatility and the VIX spent most of the week above 40.
Although there was not a lot of action last week, it did close out one of the worst quarters for equities, as the S&P 500 lost 14.3 percent. Read more now.
Last week’s Federal Open Market Committee announcement that it would use the ‘twist’ approach by selling short-term Treasuries (duration of 3 years or less) and purchasing long-term Treasuries (duration of 6 years to 30 years) had an immediate impact on the yield curve.
The 10-year shot down to new record lows—below 1.76 percent—and the 30-year, which had the largest move, stood at about 2.87 percent, down from 3.15 percent a day earlier.
The Federal Reserve may implement a “twist” strategy, selling short-term securities that make up the majority of its balance sheet and purchasing longer-dated securities, in an attempt to lower longer-dated rates. The move could be made public at this week’s Fed meetings.
Anticipation of some sort of action from the Fed sent equity prices higher last week. The S&P 500 gained 5.4 percent.
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Equity markets slipped lower during the holiday-shortened week. The S&P 500 Index lost 1.65 percent.
President Obama’s speech last Thursday night—which outlined a new jobs package intended to help stimulate hiring—did little to inspire equity markets. Doubts immediately surfaced about the temporary nature of many of the programs presented, as well. Read more now.
