Daily Market Color

Yields Soar on Inflation Bets

Yields hit one-year highs while equities pull back
Equities decreased from record levels led by a rout in tech shares as Treasury yields soared to levels not seen in over a year. All three major indices fell with the tech-heavy Nasdaq dropping 3.1% on the day as investors bet on faster growth and inflation. The 10yr yield climbed as high as 1.75% for the first time since January 2020 before closing at 1.73%, an increase of 9bps from yesterday’s close.
Jobless claims unexpectedly rise
The Labor Department reported that Initial claims increased to 770,000 from the prior week, while continuing claims fell for the ninth week to 4.12 million.
Philly Fed regional manufacturing index surges; price index at a 41yr high
The Philly Fed’s March survey of factory conditions increased to its highest level since 1973, while the prices paid for materials surged to a 41yr high. The general activity index increased to 51.8, up from 28.7 and beating economists’ estimates of 23.3. The reading on prices increased to 75.9, up from 54.4, increasing investors concern on inflationary pressures awaiting the heating U.S. economy.

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