Market Snapshot May 7, 2018
Good Monday AM,
Congratulations to the Las Vegas Golden Knights as they advanced to the Western Conference Hockey Finals with a win over San Jose last night. Remarkable year for the most-winning expansion team in NHL history.
Today’s bond market looks pretty much the same as it did last week and the week before. The Dow had a 700 point swing on Friday to finish up +320. No news today and the DOW is up another 150 points. Adding in that Oil is back over $70/barrel which is inflationary and not helping the situation in bonds. Though nothing on the economic data agenda today, it is a big news week with a few different inflation numbers coming (Wed is PPI and Thursday is CPI). Let’s hope for tame numbers and a nice bounce through resistance. You know what will happen if inflation comes in hot. For now and until the 10-yr gets below 2.90% (currently 2.96 and mortgage bonds are -2bps), the advice needs to be to lock and float down if there is any improvement.
Make today great!