Market Snapshot July 11, 2017
Good Tuesday A.M.,
Not much news today. Bonds continuing to claw back a bit of lost ground which is what we have been hoping for. The 10-yr has improved to 2.35% as well. Fed Governor Brainard said today she expects the Fed to start running off its balance sheet soon but does not see a third rate hike this year. That was unexpectedly transparent. Bonds didn’t seem to mind that news. The runoff will be small and gradual and right now, as the Fed has more capacity to buy bonds than it has been executing on, I am hoping that the market effects will be muted.
Tomorrow we will see what pearls Ms. Yellen has in her bag ‘o’ tricks when she speaks to congress. That will likely give the bond market direction from here. Fingers and toes crossed for that. In truth, there is a lot more buzz around Donald Trump Jr.’s meeting with a Russian attorney than anything else right now. Don’t get lulled to sleep as I would expect to see some volatility tomorrow with Ms. Yellen’s testimony and a 10-yr note auction.
Make today great!