Laserfiche WebLink
Metadata
Document management portal powered by Laserfiche WebLink 9 © 1998-2015 Laserfiche. All rights reserved.
June 2008 <br />MARKET REVIEW <br />MARKET SUMMARY <br />Bond yields were slightly lower in June. The market's recent activity stems from concerns <br />over a slowing economy and continued financial market volatility, as well as rising <br />inflation expectations. There is still concern that the economic slowdown will turn into a <br />recession, but the final reading for first quarter Gross Domestic Product was revised <br />higherto reflectthattheeconomygrew 1.0%. <br />The June Non-Farm Payroll number showed a decrease of 62,000 jobs, and the <br />unemployment rate remained at 5.5%. This was the sixth straight report that <br />demonstrated negative job growth and increased fears that the economy will continue to <br />perform poorly. Inflation readings remain elevated and commodity prices high, raising <br />concerns that the Federal Reserve will eventually have to raise interest rates to Combat <br />inflation. <br />The FOMC held the federal funds rate at 2.00% at their meeting on June 25th. The next <br />scheduled FOMC meeting is on August 5th. Going forward, market participants will <br />continue to look for signs of an economic slowdown as well as anticipating the direction <br />and timing of the next Federal Reserve move. <br />• <br />3 Month ~ ~ : <br />1.73 ~ ~ : <br />1.88 <br />(0.15) <br />2 Year 2.62 2.63 (0.01) <br />5 Year 3.34 3.40 (0.06) <br />10 Year 3.98 4.04 (0.06) <br />30 Year 4.53 4.70 (0.17) <br />• ~ <br />Syr - 2yr T-Note 1 1 <br />0.73 { 1 <br />0.77 <br />(0.04) <br />10yr - 2yr T--Note _1.36 1.41 (0.05) <br />Souroe: Bloom6e~g <br />Treasury yields were slightly lower in June as market participants attempted to <br />ascertain the consequences of financial market volatility, ahousing-led economic <br />slowdown and an end to Federal Reserve interest rate cuts. The yield curve retained <br />its normal shape. <br />