Weekly Market Update (06/19/09)‏

HEADLINE NEWS WEEK ENDING 6/19/09

Overview
The Bureau of Labor Statistics announced a 1.3% decline in the Consumer Price Index year-over-year, the sharpest 12-month decline in prices since April 1950. more..http://payden.com/library/weeklyMarketUpdateE.aspx.

U.S. MARKETS
Treasury/Economics
Interest rates ended the week largely unchanged despite intra-week volatility as investors position for record supply and a Federal Open Market Committee meeting on June 24th. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Large-Cap Equities
The stock market fell for the first time in four weeks on falling commodity prices and lowered ratings on banks. more...
http://payden.com/library/weeklyMarketUpdateE.aspx
Corporate Bonds
Investment grade primary activity continued its torpid pace as geopolitical issues took center stage. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Mortgage-Backed Securities
Despite intra-day volatility, agency mortgage performed favorably as interest rates oscillated in a tight range. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Municipal Bonds
The municipal bond market established a more solid footing this week as yields fell by about 8 bps in the 10-year maturity range of the AAA-rated general obligation (GO) curve. more...http://payden.com/library/weeklyMarketUpdateE.aspx

High-Yield
Along with the equity market, High Yield took a breather this week. Going into Friday, the broad high yield market was 1.3% lower and 25 bps wider relative to Treasuries on the week. more...http://payden.com/library/weeklyMarketUpdateE.aspx

INTERNATIONAL MARKETS
Western European Equities
European stocks went down this week. The sectors with the worst performance were basic resources (-10.7%) and autos & parts (-10.4%). 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 -4.1% this week, while the Russian stock index RTS went down -10.3%. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Global Bonds and Currencies
Major non-US government bond markets saw modest gains across the curve over the past week, extending progress made at the end of the previous week. more...http://payden.com/library/weeklyMarketUpdateE.aspx

Emerging-Market Bonds
Emerging market dollar-pay debt spreads were wider this week as investors continued to move to the sidelines after the strong rally over the past two months. more...http://payden.com/library/weeklyMarketUpdateE.aspx

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