Fiscal Monitor

Assessing Fiscal Conditions

The Observatory

Welcome to The Observatory. The Observatory is how we at Prometheus monitor the evolution of the economy and financial markets in real-time. The insights provided here are slivers of our research process that are integrated algorithmically into our systems to create rules-based portfolios.

Our primary takeaways are as follows:

• The latest fiscal data continues to suggest a growing economy, with government tax receipts sequentially increasing.

• Government spending increased modestly, which supports continued treasury issuance.

• Deficit spending conditions continue to flow to nominal GDP and keep treasury issuance elevated. This remains an upward pressure on bond yields, despite an improving macro backdrop for treasuries.