Economic reports this week may reflect improving outlook
WEEKLY MARKET COMMENTARY |
The U.S. 10-year Treasury yield has increased 31 basis points to 2.1478 percent as of May 8. This reflects an improving outlook for the economy, which will likely be bolstered by a bevy of incoming reports this week, including labor market, retail sales, consumer sentiment and manufacturing.
Last Friday’s April employment report rebounded to show 225,000 new jobs created and a decline in the unemployment rate to 5.4 percent. The labor market is quickly moving toward what policymakers have stated is the full employment threshold, so it wouldn’t be surprising to see sharp movements in financial markets this week if data on retail sales, regional manufacturing and consumer sentiment arrive above the consensus forecasts.