April 19, 2018
A rare Philly Fed report shows clear signs of capacity stress: the longest delivery delays and the 3rd highest workweek in 50 years of records. And prices are showing it with current selling prices rising at a 10-year high and expectations for future prices at a 30-year high. The day's other data are also important as initial jobless claims failed to come down and are not pointing to strength for the monthly employment report.
Signs of inflation are not good for bonds where demand fell for a second day. At 2.92 percent, the 10-year Treasury yield is up 3 basis points on the day and 10 basis points on the week and approaching the 3 percent level last seen in early 2014. The Dow fell 0.3 percent on the session to 24,644 with the dollar index down 0.3 percent to 89.87.