Market Snapshot November 5, 2018
Good Monday Morning,
Bonds are recovering slightly after Fridays sell off. The news today is light, with ISM services being released, and beating expectations. This is a fairly light news week, with PPI being one of the more important releases of the week. At the moment, the long end of the curve is outperforming the short end, which further flattens the yield curve. If the DOW continues to rebound, I expect further selling in bonds. Technically, we are teetering on some fairly important levels. The 10-yr is at 3.19% and at the first line of support, we break that we go to 3.25%, we break that we go to 3.60%. None of that sounds appealing to me so let’s hope the retracement/mini rally in stocks runs out of steam soon (Dow currently up 200bps). No reason to float.
Make today great!