The Bloomberg U.S. Financial Conditions Index provides a daily measure of the relative strength of the U.S. money, bond and equity markets, and is considered a useful gauge of the overall conditions in U.S. financial and credit markets. The Financial Conditions Index climbed to a level above -0.50 yesterday (Friday, closing at -0.46) for the first time since August 8, 2007, and is now at a 26-month high (see chart above). Another positive sign that an economic and financial recovery are underway.