Market Watch | Baker Market Update

Baker Market Update

Our BMU is designed to keep you abreast of changing market conditions and the variables that drive those changes.

Baker Market Update – Week in Review

Released every Friday, BMU is a brief and informative newsletter that provides financial institutions a review of the week’s economic developments, tracks Federal Reserve policy, and provides an overview of the week’s expected data releases.

Below are the most recent Baker Market Update additions.

Sample View

Hope Springs Eternal

This morning’s Treasury sell-off along with a renewed rally in equities seems to be the result of improving outlooks amid expanding reopening efforts taking place nationwide. The early, quarter-point price slip in the Ten Year has pushed that yield up to around 71 basis points as the Treasury prepares to bring a new 20-year bond issue to market later today. Conflicting reports over the effectiveness of Moderna’s possible vaccine breakthrough was the source of some late-day volatility yesterday.

Earlier today, the Mortgage Bankers Association reported that its Mortgage Applications Index fell 2.6% for the week ending May 15th. New Purchases fell 6.4% after enjoying a 10.6% rise the week previous. Refinancings fell 6.3% on the heels of the prior week’s 3.3% decline. Later today, the minutes of the FOMC’s late-April meeting are scheduled for release and will surely be thoroughly examined for clues to the central bank’s intentions.

In the meantime, the rally in WTI continues with a barrel of crude currently going for about $32.75, a rise of just under a dollar. Gold appears to be little changed at around $1,746/ounce.

Disclaimer: INTENDED FOR USE BY INSTITUTIONAL INVESTORS ONLY. Any data provided herein is for informational purposes only and is intended solely for the private use of the reader. Although information contained herein is believed to be from reliable sources, The Baker Group LP does not guarantee its completeness or accuracy. Opinions constitute our judgment and are subject to change without notice. The instruments and strategies discussed here may fluctuate in price or value and may not be suitable for all investors; any doubt should be discussed with a Baker representative. Past performance is not indicative of future results. Changes in rates may have an adverse effect on the value of investments. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.