Market Snapshot August 8, 2018

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Good Wednesday AM on this best day of the week,

 

Bonds are fairly flat and trying to find footing after yesterday’s selling pressure. There was no scheduled news today, other than a large 10-yr Treasury auction at 10 a.m. Typically not a market mover, but the sheer size of this one may be different. Currently both the 10-yr and Mortgage Bonds are flat on the day. Tomorrow is PPI and then CPI on Friday. For now, things are calm. Still no reason to float. Maybe wait the 30 minutes until the Treasury auction but other than that, I would lock.

 

Not much in the news so I’ll digress for a moment.

 

Elon Musk, CEO of Tesla, sent a tweet yesterday that he may (may) take the company private at a share price of $420. The stock rallied a tone and Tesla, which is the most shorted company in the markets, cost those short sellers more than 1 billion dollars. It was about a 15 word tweet, so that came at a cost of about $80 million per word. I wonder how long the shorts can stay in…

 

China said Wednesday it will retaliate against the latest round of U.S. tariffs on Chinese imports. The Chinese Ministry of Commerce announced a 25 percent charge on $16 billion worth of U.S. goods. The 333 goods being targeted by China include vehicles such as large passenger cars and motorcycles. Various fuels are on the list, as well as fiber optical cables. Still lots of Tariff talk but I don’t see it helping the bond market lately.

 

And according to the National Association of Homebuilders, 22 percent of consumers aged 35 or younger plan to buy a home in the next year. That’s a big number and with millennials already being the largest population cohort, marketing to them is a must.

 

Make today great!