ILCB - Weekly Market Pulse: What Is Today's New Normal?

• The New Normal looks a lot like the Old Normal in that it is unknown and ever changing. All we can do is observe the present with clear eyes.
• For now, the economic outlook is still pretty good. It isn’t the boom everyone was expecting a few months ago, and it probably won’t be, but the economy is still improving.
• In last week’s market action, we started the week with interest rates resuming their fall, the 10-year Treasury yield hitting a low of 1.13% and ending the week up 5 basis points to 1.29%.
• Weare still short a lot of jobs since the beginning of COVID, but the marketreaction was clear. On Friday, in the wake of improvement in jobs data, gold fell 2.5%, the 10-year Treasury yield rose 7 bps, thecopper/gold ratio jumped 2.6%, and the yield curve steepened - all indicationsthat the market viewed the report as quite positive.

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