Daily Market Commentary

May 9, 2019

Bonds
The effective fed funds rate fell to 2.39% on Wednesday from 2.40% the prior session, according to New York Fed data. With the Federal Reserve's 5bp cut to the interest on excess reserves (IOER) rate to 2.35%, that puts the fed funds rate 4bp above IOER for the first time since 2008.

Economy
Excluding food and energy, producer prices increased 2.4% from a year earlier, matching the slowest gain since last May and missing projections for an acceleration following the prior month's 2.4% reading, a Labor Department report showed Thursday.

Global
The U.S. trade deficit with China decreased to the narrowest in almost three years as imports slowed and exports advanced, offering President Donald Trump a chance to claim his tariff war is yielding the desired results just as negotiations reach a critical stage.

The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy or sell.

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