From the Desk - Economic Commentary
Brandon Casey, VP/Member Strategies - 8/3/2021
U.S. stocks are flat Tuesday morning as investors monitor the delta variant and react to China issuing potential technology restrictions, specifically to online gaming. Chinese state media criticized online gaming, saying it was a “spiritual opium”. On the Covid front, many counties have been beginning to re-implement mask mandates and New York announced that it will soon be requiring vaccines for indoor dining, fitness and entertainment.
On the data front today, factory orders rose 1.5% in June, the thirteenth increase in 14 months. Durable goods orders rose 0.9%, up from 0.8% in the flash reading, and core capital goods orders rose 0.7%, up from the initial estimate of 0.5%. Elsewhere, Fed Governor Cristopher Waller said that he could see the Fed reduce bond purchases in October if the next two jobs reports post strong results.
U.S. Treasury yields are marginally lower, with the 2-year Treasury yield down 0.4 basis points to 0.17%, the 5-year Treasury yield down 0.6 basis points to 0.64% and the 10-year Treasury yield down 0.8 basis points to 1.16%. Long-term advance rates are slightly lower today.
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