Bonds Take it on the Chin

Bond investors, apparently unsatisfied with Chairman Powell’s attitude toward inflation, have taken it upon themselves to do something about it and have been selling their Treasuries overnight and this morning. As a result, the Ten-Year’s yield has been pushed up to 1.73% off of a 3/4 point price decline while the Long Bond’s slide of more than a full point has elevated that yield to 2.49%. The Two-Year is little changed at around 15 basis points.

Almost lost in this morning’s frenzied sell-off was today’s report on Jobless Claims from the BLS. For the week ending March 13th, Initial Claims totaled 770k and that was more than the 700k that was expected. The prior week’s 712k was revised to 725k. Continuing Claims for the week ending March 6th fell slightly to 4.12M from 4.14M against an expectation of 4.03M.

Also out was a blockbuster report from the Philadelphia Fed that its Business Outlook Survey roared to a record level of 51.8 this month from 23.1. Analysts were only expecting a slight improvement to 23.3. A little later, the Conference Board is expected to report that its Index of Leading Economic Indicators improved by 0.3% last month. Equity markets seem a little mixed in pre-market trading as crude oil slips a bit to $63.84. Gold prices are off about $14 to $1,731.