Good Thursday AM,
Thursdays always seem to have a lot more economic data released than any other days.
There was lots of data today and it was almost universally, bond friendly. That said, it is never a straight line up or down and the bond market is consolidating a bit. The 10-yr has backed up to 4.34% and I won’t be concerned until we break through the line of resistance at 4.36%. As long as we hold that line, I see us improving to the low 4.20’s and high teens. If the 10-yr does break through 4.36%, I think that is a sign to lock. Below is some deeper dive into today’s data/news. Tomorrow, we do get some sage words form Fed Chairman Powell so those can always move markets..
The Federal Reserve’s Beige Book for November noted that economic activity slowed since the October report, as four Districts reported modest growth, two reported little change, while six reported declining activity. Americans slowed their spending in October and inflation continued cooling as the economy downshifted into fall after a fast-paced summer. Consumer spending rose just 0.2% in October, down sharply from a 0.7% rise in September. The October reading marked the slowest increase since May. PCE was flat and the Core just .2% both showing inflation is subsiding. Weekly Jobless Claims as expected at 218K. Pending Home Sales Index was less bad than expected at -1.5 vs -2.0
Interesting piece to share from the WSJ:
What Will Motivate More People to Make Their Homes More Energy Efficient?
How do you get people to reduce their home’s carbon footprint? The U.S. government hopes the answer is to appeal to their pocketbooks. As part of the Inflation Reduction Act, the government is rolling out increased federal tax credits and rebates to help offset the cost of energy-efficient upgrades such as electric heat pumps and added insulation, and adoption of clean-energy technologies such as rooftop solar. Personal finance writer Lisa Ward looks at which financial incentives work—and which don’t.
Please remain safe and healthy, make today great!