Busy Week Ahead for Markets

<p>The economy’s fundamentals may not be as good as everyone believes they are, says Thirty Capital CEO Rob Finlay in Monday’s CRE Capital Market Report.</p> <p>In the regular weekly meeting with his team of analysts, Rob commented on a range of numbers, including interest rates and some over-leveraging of assets, and indicated that the market could overheat in the near future.</p> <p>The corporate bond spreads are as tight as they’ve been since 2007 and, with the overall struggle to find decent yields for investors, an asset bubble could be on the horizon.</p> <p>Overall, the last week was quite on the data front, with very little change in interest rates. The ten-year closed last week at 1.56%.</p> <p>This week will be very busy, with durable goods stats being released on Monday. Tomorrow, consumer confidence figures will be issued, and on Wednesday a Fed meeting.</p> <p>Thursday sees GDP figures and initial jobless claims updates. On Friday, a lot of data will be released, including personal spending stats, Chicago PMI, PC deflator, and consumer sentiment.</p> <p>Comments Bryan Kern: “We've been rate-bound between around 1.55% and about 1.70% for the past three weeks now, so we'll see if some of this week's data changes any of that.</p> <p>“The other thing we want to look at is following the discussion around President Biden's capital gains tax.”</p> <p>Rob notes that it appears the Fed’s stance is not to do anything on rates.</p> <p>“I’ve noticed the yield curves come back a little bit, it's gone down a little bit, as well. So I’m still not sure if we're going to get that big of a spike with the data that's coming out on the ten-year rates.”</p> <p>There has been a bit of pressure on short-term rates, with the lack of SPE issuance, and short-term issuance. Eurodollars are starting to price higher, which isn’t inline with the Fed guidance.</p> <p>Observes Jay Saunder: “I think the market anticipates the Fed moving a little more quickly than what the Fed’s are guiding towards.”</p> <p>April has been a busy mont