US stocks continued their recent run as the rally extended to a fifth day. Equities were helped by President Trump’s reiteration that a “massive” tax cut was in the works. The Dow moved up another 107 points (0.52%), while the S&P 500 added 0.50% and the Nasdaq jumped 0.64%. All three major indexes hit all-time highs for the fifth straight session, which hadn’t happened since 1992.
Retail sales data beat expectations yesterday, while CPI rose by the largest amount in four years.
The yield on the 10-year Treasury moved up for the fifth straight day. The yield moved up four basis, cracking the 2.50% threshold in the process. The 10-year yield is now at its highest level since January 25th.
In terms of spreads moves, the CMBX market had its quietest day in quite a while yesterday. Spreads were largely unchanged up and down the stack for CMBX 8/9/10. CMBX 6 and 7 saw some modest widening down the stack, but the volatility was a fraction of what it has been over the last two weeks.
CMBS secondary trading saw about $120 million out for bid. The tone was positive as limited supply and buyers hunting for yield continue to keep spreads from moving north in any meaningful way at the top of the stack. Further down the curve, there was some modest softening in the new issue BBB- space.
Compliments of Trepp – a member of the EACCNY