MATT VARNER'S  FIXED INCOME REVIEW

June 28, 2017

U.S. Treasury Yield Comparison
Source: U.S. Department of Treasury  

Market Recap
  
The chart above lists yields for U.S. Treasury securities for the current and prior week.  
 

The third and final estimate for 1stquarter Gross Domestic Product (GDP) will be released tomorrow. The second estimate was reported as an annualized increase of 1.2%. Expectation is that the third estimate will come in very close to the second estimate. 

The fiscal year for most state governments begins on July 1st. According to Bloomberg as of last Friday, fifteen states were still without a budget. Some states have to plug up large deficits due to lower energy prices such as Alaska. Other states have a variety of reasons as to why they cannot balance receipts and distributions. The most notable is Illinois. Without a budget by July 1st, Illinois would begin its third fiscal year without a budget. The state suffers with $15 billion in unpaid bills, large unfunded public pensions and other financial problems. Without a budget by July 1st, S&P Global Ratings has stated they will lower the state’s credit rating to below investment grade. 

The next Federal Open Market Committee (FOMC) meeting is scheduled for July 25thand 26th.

 

Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service. Past performance is not a guarantee of future results.

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