Credit Bubble Bulletin – Doug Noland
Wednesday, May 24, 2017
May 19, 2017: Just the Facts
For the Week:
The S&P500 slipped 0.4% (up 6.4% y-t-d), and the Dow declined 0.4% (up 5.3%). The Utilities lost 0.5% (up 6.1%). The Banks fell 1.6% (down 1.9%), and the Broker/Dealers dropped 1.6% (up 2.4%). The Transports fell 1.4% (down 1.8%). The S&P 400 Midcaps slipped 0.4% (up 3.1%), and the small cap Russell 2000 dropped 1.1% (up 0.8%). The Nasdaq100 lost 0.6% (up 16.2%), and the Morgan Stanley High Tech index declined 0.7% (up 18.7%). The Semiconductors gained 1.5% (up 17%). The Biotechs slipped 0.3% (up 17.4%). While bullion jumped $28, the HUI gold index was unchanged (up 8.1%).
Three-month Treasury bill rates ended the week at 89 bps. Two-year government yields declined two bps to 1.27% (up 8bps y-t-d). Five-year T-note yields dropped seven bps to 1.78% (down 15bps). Ten-year Treasury yields dropped nine bps to 2.24% (down 21bps). Long bond yields sank nine bps to 2.90% (down 17bps).
Greek 10-year yields were little changed at 5.62% (down 140bps y-t-d). Ten-year Portuguese yields sank 19 bps to 3.18% (down 56bps). Italian 10-year yields fell 12 bps to 2.14% (up 33bps). Spain’s 10-year yields declined five bps to 1.58% (up 20bps). German bund yields declined two bps to 0.37% (up 16bps). French yields fell three bps to 0.81% (up 13bps). The French to German 10-year bond spread narrowed one to 44 bps. U.K. 10-year gilt yields added a basis point to 1.09% (down 14bps). U.K.’s FTSE equities index increased 0.5% (up 4.6%). (more…)