Yields Rise Across the Curve After President Trump’s Press Conference on Iran

 

Treasury yields rise as rate roller coaster continues. Equities and rates both rose yesterday after President Trump’s measured press conference on Iran where he steered clear of further escalation and said Tehran would be “standing down” following their missile strikes. The 10-year Treasury yield would ultimately climb 5 basis points to 1.87%, while the S&P 500 would climb to 3253, a mere 0.45% away from its all-time high. With geopolitical tensions easing, markets will now turn their attention to Friday’s jobs report- the first of 2020.

 

 

Bank earnings to kick off early next week. Fourth quarter bank earnings will begin in earnest next Tuesday, staring with large banks like JPMorgan, Citigroup, Wells Fargo and First Republic. Analysts will be focused on loan growth, in particular C&I loan growth after a downturn late last year. Deposit growth will also be an area of focus, Fed data suggesting that deposits grew at an 8% annualized rate (the strongest since January 2015). Headed into earnings the S&P Regional Banking Index is up 14.68% year-over-year.

 

 

Day ahead. Today, six Fed officials are scheduled to speak: Vice Chairman Richard Clarida, Minneapolis Fed President Neel Kashkari, New York Fed President John Williams, Richmond Fed President Thomas Barkin, Chicago Fed President Charles Evans and St. Louis Fed President James Bullard. The EIA will also release their Natural Gas Report later this morning. During periods of strong economic growth, demand for natural gas products should rise. The weekly Fed balance sheet report will be released this afternoon.