Treasuries are little changed as the market awaits tomorrow’s April CPI report. Yesterday’s senior loan officer survey from the Fed showed continued credit tightening from U.S. lenders in Q1, as well as reduced demand for credit, but there weren’t yet signs of a “credit crunch.” In short, it was better than expected, but not good enough to spark a bid in regional bank stocks. Commercial real estate is at the center of broad market worries as the next potential shoe to drop, which was also listed as a primary area of concern in the Fed’s Financial Stability Report released yesterday. Regarding the debt ceiling negotiations, President Biden and House Speaker McCarthy are scheduled to meet this afternoon, their first meeting in three months according to Bloomberg. The two will be joined by other Democrat and Republican leaders from the House and Senate.
Jason Haley
Chief Investment Officer
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