Market Snapshot September 12, 2018

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Good Morning on this best day of the week Wednesday,

 

PPI came in weaker than expected which is giving bonds/rates a little support. The 10-yr is at 2.96% and mortgage bonds are a little better. Dan Rawitch said it succinctly this am.. Bonds continue to struggle. I am hoping that this morning’s weaker than expected PPI report will help shift the attitude of the market. Also, later today we will see the results of the 10-year auction, which could be a market mover. So, let’s hope for a strong auction. The next two days of news are very important. First we will get CPI and then Retail Sales. Let’s hope inflation is tame and there is not too much growth in the retail sector.

 

The next two days will be interesting. Until we see some improvement in bonds (with the 10-yr back below 2.90%), there is really no reason to float. I would recommend locking. Good idea to keep the lens that despite there being some weak data through the rest of September, and without almost all regard to how weak it might be, the Fed is going to raise rates at the next meeting. That is very likely to invert the yield curve. On my top ten list of things to be concerned about… it ranks somewhere between my kids going out at night and a zombie apocalypse (my parents took me to see the movie ‘Night of the Living Dead’ and I still have nightmares about it, no joke). If you are interested to read about an inverted yield curve, here is a link to one of the top search responses.

 

More soon. Make today great!