Lost Jobs and More Bonds

The Baker Group's Market Moment Cover

As expected, ADP Payroll Services announced this morning that the economy lost 20.236 million jobs in April and that was slightly less than the 20.5M that was forecast. Also released this morning was a report showing that Mortgage Applications rose by 0.1% for the week ending May 1. The prior week’s tally posted a decline […]

Bonds Slip as Oil Rallies

The Baker Group's Market Moment Cover

Treasury bond prices are poised to open slightly lower this morning as crude oil prices have rallied by almost $3/barrel to around $23. Overnight, equity markets around the world have rallied on the news that more economies are starting to relax various degrees of pandemic mitigation efforts. The Treasury’s Ten-Year is off about a quarter-point […]

Afternoon Wrap-Up

The Baker Group's Market Moment Cover

After this morning’s flurry of mostly disappointing consumer and jobless data, the Treasury market finished out the day with prices little changed. But, a one-point drop in the Long Bond still left its yield slightly below 1.30%. The Ten-Year’s yield is little changed at around 63 basis points. Equities rallied late to get off the […]

Afternoon Wrap-up

The Baker Group's Market Moment Cover

Equities enjoyed a big day while Treasuries wound up more or less unchanged. News of positive clinical trials for a new virus-treatment drug has created much cautious optimism among stock market investors. After shrugging off the anticipated news of a Q1 GDP contraction and a larger-than-expected collapse in Personal Consumption, investors also learned of a […]

The Expansion is Over

The Baker Group's Market Moment Cover

The nation’s longest economic expansion ended in the first quarter with an initial estimate of a 4.8% GDP contraction. That news came along with a report showing that Personal Consumption fell by a larger than expected 7.6% for the same period. Investors also learned today that the Personal Consumption Expenditures Index rose by 1.3% in […]

Afternoon Wrap

The Baker Group's Market Moment Cover

The Treasury market is set to close-out a positive day as a half-point gain in price has pushed the Ten-Year yield down by about 5 basis points to 0.60%. Credit markets continue to trade more reactively to central bank policies and actions and less to fundamental economic performance data. Earlier in the day, reports of […]

Fed Extends and Expands Municipal Liquidity Facility

The Baker Group's Market Moment Cover

The Federal Reserve made a late day announcement that it will expand and extend its Municipal Liquidity Facility to include bonded debt obligations up to three years in maturity.  The maturity maximum was originally 24 months. Today’s statement also specifies that the program will be eligible to counties with a minimum population of 500k and […]

Attitudes Improve After Fed Announcement

The Baker Group's Market Moment Cover

This morning’s announcement by the Federal Reserve that it would be buying an unlimited amount of bonds in order to keep borrowing costs low and liquidity high has lifted the spirits of market participants everywhere. The Fed will buy Treasuries and agency-issued mortgage-backed securities “in the amounts needed to support smooth market functioning and effective […]

No Green Shoots, but Lots of Green Arrows

The Baker Group's Market Moment Cover

Friday has begun with an equity rebound and a Treasury rally at the same time. Global stock markets have, overnight and this morning, rallied to a degree for reasons known best to those buying the stocks. Treasury bonds are enjoying a rally of their own as the Ten-Year barely hangs on to 1% while the […]

Markets Continue to Wander

The Baker Group's Market Moment Cover

Despite yesterday’s Senate passage of a paid-leave bill that has since been signed into law, investors remain nervous, cautious, fearful, and uncertain. Some of that is always with us, but seldom to this degree. Equities are experiencing another sell-off as bonds rally. The Treasury’s Ten-Year is up over a point and yielding a few basis […]

More of the Same, Again

The Baker Group's Market Moment Cover

Efforts to support markets in disarray and an economy practically on house arrest remain unrequited as today begins with another big equity sell-off and a modest (by current standards) price rally for Treasuries. The administration $1Trillion dollar support proposal hasn’t had the restorative impact the plan’s authors had envisioned. The Senate today will likely vote […]

Rate Cutting and Hand Wringing

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Equity markets are poised to open WAY down as Treasury bonds are trading WAY up. Yesterday’s unexpected, by some, rate cut by the FOMC puts the policy rate back to the Zero-Bound. In addition, the central bank pledges to buy $700B of bonds. The move was intended to calm jittery and volatile markets. Some think […]

Today is Another Day, Scarlet

The Baker Group's Market Moment Cover

Yesterday’s huge equity sell-off is set to reverse itself at least partly this morning while the behavior of the Treasury market suggests that fewer investors feel the need to seek the safe haven of America’s sovereign debt. Or not. Has the Fed’s massive repo accommodation reduced fears of insufficient market liquidity? Have investors thoughtfully considered […]

Is More of the Same Still News?

The Baker Group's Market Moment Cover

Another day with bonds up big and stocks down bigger. The official declaration by the W.H.O. that the COVID-19 outbreak is now a pandemic along with a new U.S. travel ban excluding travelers from Europe have combined to spark new reactions and escalate old ones. Last night’s Presidential address that was meant to assuage concerns […]

Bonds Give Up Gains, Stocks Keep Losses

The Baker Group's Market Moment Cover

After a tumultuous morning, the Treasury’s Ten-Year has given back most of the one-point gain it enjoyed earlier in the day, and its yield has scooched up to around 80 basis points. Equity markets continue to reel with the DJIA down around 1,200 points. Details on a proposed fiscal stimulus plan are still sketchy, as […]