Daily Market Color August 3, 2021Real Yields Hit Record Low as Equities Rise Yields fall across the curve; S&P closes on record high The rate rally continued as Treasuries notched their third straight session gain, the 10y UST yield hitting 1.15% early in the day before closing flat at 1.17%. Record COVID hospitalizations in Florida and new restrictions in large cities worldwide are starting to put doubts in the economic recovery and future growth. Equities continue to rise as strong corporate earnings are currently outweighing COVID concerns as the S&P closed on a record high. Senior loan officers report easing lending standards as loan competition heats up The Q3 Senior Loan Officer Outlook Survey released yesterday showed banks have started to ease lending standards as competition for loans heats up. In April’s report, 17.8% of all respondents said they eased lending standards for large & middle-market C&I loans compared to 32.4% in the July report. Loan officers have also eased spreads on loan rates with 48.6% reporting narrower spreads, compared to 33.3% in April Employment data in focus Jobs, jobs, jobs. Lots of employment data being released in the next few days as investors will watch for continued improvement in the labor market. The ADP employment report will be released tomorrow, U.S. weekly initial claims will be printed on Thursday, and July nonfarm payrolls data will be announced on Friday. Yesterday, Fed Governor Waller supported a September taper announcement if the August and September jobs data continued to show an improving labor market.