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.
