Week in Review 6/12/2020

S & P 500 saw a pretty dramatic reversal on Thursday, though it bounced off the 3000 price level Friday. Similar story across global equity indices.

US CPI flattened out in May, potentially marking an end to deflation concerns. US Initial Claims at 1.5 million, bringing total unemployed to 44 million even as reopening continues.

We also saw yields on the 10 Yr Treasury drop again as demand increased in the risk off setting.

M2 supply continues to level off, though the FED has reiterated its accommodative stance on the economy. US Real Estate loans down in May as well. FED foreign asset levels jump to start off June.

In fixed income, US investment grade debt continues to normalize but junk bonds ended the week clearly risk off. Slight increase in investment grade OAS shows some fears, but overall trend is maintained for the moment. Overall Treasury yield curve reflective of this environment as well.

Crude Oil approaches $40 a barrel.

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