Bond Yields End Week Near Multi-Month Highs

In today’s economic news,
the University of Michigan Consumer Sentiment Index
increased from 86.7 to 88.9 in March. Factory Orders rose much less than
expected in February
and Chicago PMI rose to 60.4 in March vs. 54.9 in February (report).

After four consecutive days of declining Treasuries ended the week by posting a
small advance on Friday. The gains erased only a small portion of this week’s
decline that saw yields hit multi-month highs. The 10yr T-note yield ended the
week at 4.853% and the 5yr T-note yield closed at 4.814%. The Federal Reserve
raised interest rates 25bp for the 15th consecutive time to 4.75% earlier this
week, and interest rate futures are pricing in more rate hikes to come.

The Dollar closed lower for the week despite rallying today. Volatility has
picked up noticeably in recent days with large swings in many of the majors.

Energy prices rose this week, with Crude Oil closing at $66.63. Unleaded Gas and
Heating Oil recorded strong advances for the week. Even Natural Gas got in on
the action earlier in the week but succumbed to selling pressure on Friday that
caused it to close slightly lower for the week.

The metals hit multi-year highs this week. Gold and Silver managed to climb to
levels not seen since the 1980’s, while Copper hit a new all-time high.

Economic News

University of Michigan Consumer Sentiment Index at 88.9 in March

Factory Orders Up 0.2% in Feb. (report).

Chicago PMI at 60.4 for March vs. 54.9 in Feb (report).

Ashton Dorkins

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