Daily Market Color June 29, 2021S&P Closes on Record High, Yield Curve Flattens S&P eyes 5th straight month of gains while yields fall Swap rates were flat across the curve today, while UST yields were slightly down as the yield curve continued to flatten. The 10y UST closed down 1 bps to 1.47%. Equities were slightly up on the day with the S&P and Nasdaq closing on another record high. The S&P is currently on pace to close its 5th straight month of monthly gains and has risen more than 90% from its pandemic lows. Housing prices hit three decade high U.S. home prices increased the most in over 30 years during the month of April. The S&P Case-Schiller index rose 14.6% YOY, the largest gain since 1988. Housing prices continue to be driven by migration from urban areas to suburban homes stemming from the COVID pandemic. Consumer confidence hits new pandemic high The consumer confidence index hit a new pandemic high in the month of June. The report showed increasing optimism due to vaccination rates as more Americans are looking to increase spending on services. The proportion of consumers planning to purchase homes, automobiles, and major appliances all rose in June.
