Overnight inflation reports from Germany and Spain weakened US Treasuries yields as the curve resumed its inversion. German inflation accelerated in the latest report and reached double digits for the first time since the Euro was introduced 20 years ago. To smolder inflation, the European Central Bank could mirror the actions of the US Federal Reserve and raise short-term interest rates by 75 bps. In the US, initial jobless claims for the week of Sept 24th beat expectations and declined 16k to 193k. Compared to the previous decade, initial claims have averaged approximately 306k and remain at historically low levels.
Chris Eckhoff
Director, Investment Management Group
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