GLOBAL: Supply Chain Pressures Stabilizing At Problematic Levels
The NY Fed's Global Supply Chain Pressure Index (GSCPI) suggests global bottlenecks eased slightly in May to 2.90, reversing most of the tightening seen in April (3.40, which was up from 2.80 in both Feb and Mar).
- The majority of the components in the GSCPI eased in May.
- The NY Fed's overall view is that global supply chain pressures have stabilized "at historically high levels" over the past 3 months.
- The reading suggests little relief for inflation-boosting/growth-suppressing supply chain issues, with Chinese lockdowns a major factor.
Source: NY Fed, MNI
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Investment-grade corporate credit risk has see-sawed back near new 2Y highs tapped early Friday, closing levels well off midday lows as stocks traded modestly weaker: S&P E-Mini Future down 30.25 points (-0.73%) at 4113.75
- Investment grade risk measured by Markit's CDXIG5 index currently +3.464 at 86.919 vs. new 2Y high of 87.321 around midmorning; CDXHY5 high yield index at 100.813 (-0.837).
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