Fixed Income Weekly Primer

Stronger-than-expected May labor and economic data have pressured Treasury yields higher, leaving markets focused on incoming CPI and PPI readings ahead of the upcoming FOMC meeting.

Key Takeaways

• 1.Stronger-than-expected May job data and ISM readings suggest a resilient economy, keeping the possibility of higher interest rates on the table.
• 2.Treasury yields rose across the curve last week, particularly on the short end, while municipal yields moved lower.
• 3.Markets are closely monitoring upcoming inflation data (CPI and PPI) ahead of the FOMC meeting next week.