Please note: Data values previously published are subject to revision. For more information, refer to the vintage series in ALFRED®.
Financial market stress fell slightly over the previous week, according to the St. Louis Fed Financial Stress Index (STLFSI). For the week ending April 3, 2015, the STLFSI measured -1.072, down from the previous week’s revised value of -1.068. This is the third consecutive weekly decline.
Over the past week, nine of the 18 indicators contributed negatively to the STLFSI, two fewer than the previous week. The largest negative contributions over the past week were made by the Merrill Lynch Bond Market Volatility Index (Mlynch_BMVI_1mo), the expected inflation rate over the next 10 years (BIR_10yr), and the difference between the 3-month commercial paper rate and the yield on 3-month Treasury bills (CPS_3mo). Seven of the 18 indicators contributed positively to the weekly change in the STLFSI, one more than the previous week. The largest positive contribution was made by the Chicago Board Options Exchange Market Volatility Index (VIX).
Over the past year, 11 of the 18 indicators made a positive contribution to the index and seven indicators made a negative contribution to the index. These numbers are unchanged from the previous week. The largest positive contribution over the past year was made by the Mlynch_BMVI_1mo, and the largest negative contribution was made by the yield on corporate Baa-rated bonds (BAA).
For an explanation of the 18 component variables in the STLFSI, refer to the STLFSI Key.