Weekly Market Update (5/29/09)‏

HEADLINE NEWS WEEK ENDING 5/29/09

Overview
The Commerce Department revised up its estimate of US real GDP growth for the first quarter of 2009 to an annual rate of -5.7% from the -6.1% decline reported previously. more...http://payden.com/library/weeklyMarketUpdateE.aspx

US MARKETS
Treasury/Economics
US Treasuries sold off heavily at the beginning of the week, accelerated by over $100 billion of Treasury supply in 2-, 5- and 7-year notes this week. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Large-Cap Equities
The stock market rallied during this holiday shortened week despite fears of rising mortgage rates. Commodity prices continued to rise as crude oil prices spiked above $66 a barrel. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Corporate Bonds
Investment grade primary activity had another solid week with issuers racing to get deals done prior to month-end. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Mortgage-Backed Securities
Mortgages went on a wild rollercoaster ride as higher yields triggered a wave of piggyback selling by market participants. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Municipal Bonds
Are we witnessing a return to normalcy in the municipal bond market? Rising yields in the Treasury market cascaded across asset classes this week and municipal bond yields followed with a lag. more...http://payden.com/library/weeklyMarketUpdateE.aspx

High-Yield
The high yield market momentum of April continued into May, though the magnitude of the upward moves has become more muted. more...http://payden.com/library/weeklyMarketUpdateE.aspx

INTERNATIONAL MARKETS
Western European Equities
Stocks in Western Europe gained ground over the past week. The sectors with the best performance were basic resources (+7.0%) and oil & gas (+4.3%). more...http://payden.com/library/weeklyMarketUpdateE.aspx

Eastern European Equities
The CECE index of equities traded in Central Europe (Czech Republic, Hungary, and Poland) lost -3.3% this week, while the Russian stock index RTS went up +7.3%. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Global Bonds and Currencies
The European and UK government bond markets sold off during the first half of the week in sympathy with the sharp rise in US Treasury yields. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Emerging-Market Bonds
Emerging market dollar-pay debt spreads tightened this week as risk appetite remained strong and equity markets rallied. more...http://payden.com/library/weeklyMarketUpdateE.aspx

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