Market Snapshot January 10, 2019

snowfall1

 

Good Thursday A.M.,

 

Bonds are flat this morning. The only scheduled news today was the Weekly Jobless Claims release, which slightly beat expectations. Tomorrow is the big news today, which is the release of the CPI results. The market is looking for a very low CPI number and I hope we are not being set up to fail. The forecast is for minus .02%. Fed Chairman Powell spoke today at the DC Economics Club and confirmed the Fed can be patient and that the Fed will continue to reduce its balance sheet. The rate pause is a help, balance sheet reduction, not so much.  No real news out of the Chinese-US trade talks would have to indicate no deal was made. Stocks will lose some steam over that and hopefully we will see some buying in bonds. It’s tricky in here as we sit on a firm line of support/resistance of 2.72% on the 10-yr note. I was hoping for a better pick up in bonds after the no trade talks and Powell’s speech but not the case. Since then, stocks have improve and bonds sold off a touch. Probably best to pay defense and lock anything closing soon pending tomorrow’s CPI data.

 

Make today great!