Good Thursday Afternoon from your Hometown Lender,

A bit of a late start today.

Day 3 of 3 for important data. Overall, the economic data was more bond-friendly than not, but markets didn’t care. The Retail Sales number was the focal point and blew by expectations, Unemployment claims were a little lighter than forecasted and that one two punch outweighed all the other bond-friendly data.

The stronger data showed a momentary glimpse of a stronger economy and labor market, effectively taking the much talked about 50bp September Fed rate cut off the table. Rates have for the moment retreated back up .125%.

We do know rates will continue to improve, it is never going to be a straight line up or down. The bond market, for the moment, continues to be Sisyphus… climbing the mountain to only get knocked down as we get closer to the top.

Have faith, bonds will improve, I am exceptionally confident about this.

Stay safe and make today great!