Market Snapshot February 8, 2018
Good Thursday AM,
The volatility continues… it’s like an all-day pass to ride space mountain… you won’t get off and you still can’t see where you’re going. Stocks down 500, bonds started off in the hole as unemployment numbers were tame and the Bank of England said it will likely raise rates faster than previously thought. Since then bonds have come back a bit. The 10-yr is still at 2.83% and mortgage bonds -6bps. Yesterday we had a 10-yr treasury auction which not surprisingly didn’t go well; it’s like trying to catch a falling knife. Even if you can, why would you try? Today there is a 30-yr auction. The spreads between the 10 and 30 have been narrowing so this could be well bid and a help to rates (all be it marginal at best). This has been a very light news week, but next week is very big, with CPI coming our way.
Olympics have started. I really do love these next two weeks. There are always a few events that get started before opening ceremony. I caught myself up until 2 a.m. watching Mixed Doubles Curling last night. USA beat OAR (that the new name for the Russian team since Russia is not allowed to participate while some of their athletes are). USA lost to Canada later on.
Make today great! (yes, in the spirit of US team sport, continue to play defense…)