$5 Trillion Brick House - Kuby's Commentary 03.22.2021

The Big Bad Bond Market once again bared its jagged teeth, as the yield on the Ten-Year Treasury climbed another 10 basis points to breach the 1.75% level for the first time in 14 months. The selling pressure on both stocks and bonds resumed on Thursday afternoon and Friday morning accounting for all of the weekly decline. Investors turned to the Brick House Chairman, Jerome Powell, to protect us from the huff and puff of the Big Bad Bond Market, and on Wednesday, Powell's familiar refrain of near-zero short-term rates and $120 billion a month of bond purchases briefly calmed the markets. , U.S. new weekly jobless claims unexpectedly rose last week to 770,000 even amid a wave of abating social distancing restrictions and improving weather. The Bureau of Economic Analysis will issue reports later in the week on the strength of the recovery. On Thursday, it will release its final estimate of 4th fourth quarter GDP, which is expected to be unchanged from the last estimate in February of 4.1%. The more interesting report will come on Friday with the release of personal income and spending for February.