Treasury prices are unchanged across the curve following a relatively quiet overnight session, and S&P 500 futures are currently up 14 points in response to strong Q1 earnings reports and a lack of major (negative) macro headlines. The slope of the Treasury curve (2-year/10-year spread) continues to hold near a post-crisis low of 0.48%, and investment-grade credit spreads have firmed 3-5 basis points since the end of March (widened 25 bps the prior two months). Three regional Fed bank presidents will speak this morning (Rosengren, Bullard, and Kaplan), and the JOLTS job openings data for February will be released later this morning. Next week’s economic calendar will be headlined by the March retail sales report, but the markets will likely remain more focused on headlines related to the Mueller investigation, trade tensions, and Syria.
Managing Director, Investment Management Group