DoubleLine’s Jeff Mayberry and Samuel Lau in their review of the Aug. 2-6 market activity, spotlight higher equities led by financials with consumer staples the one sector ending the market week in the red (5:25). Higher interest rates, with the 10-year Treasury yield ending the week near the week high (5:50), left all the components of the investment-grade Bloomberg Barclays US Aggregate Bond Index as well as high yield bonds in the red. On the macroeconomic front, the co-hosts zero in on significant healing in the U.S. labor market as evidenced by nonfarm payrolls and unemployment and underemployment rates (15:26). For the Question of the Week, Jeff and Sam cover the history and evolution of the federal debt ceiling (19:53), along the way noting how Janet Yellen flip-flopped (27:50) on the debt ceiling. On Aug. 2, Treasury Secretary Yellen warned of “extraordinary measures” if Congress failed to act on the debt ceiling and “protect the full faith and credit” of the U.S. government. Back in 2011, Jeff recalls, then-Vice Fed Chair Yellen said political jockeying over the debt ceiling “usually just turns out to be theater.”
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