Good Wednesday AM (on this best day of the week),

Bonds are flat to slightly down this morning. The news released this morning was more unfriendly than friendly for bonds. The third revision of GDP came in and was adjusted up from 2.1 to 2.3% for the third quarter. Also, consumer confidence beat expectations. It was a bit surprising given all the concern about inflation. I suppose the fact that personal wealth has hit an all-time high now at 1.7 trillion is helping people feel good. This wealth is coming from a red hot real estate market and a stock market that continues to make all-time highs. The BIG news is tomorrow when the PCE numbers will be released. The FED watches these numbers more closely than they watch CPI, so you want to be very careful floating. If the consumption numbers come in too hot, hotter than the market has priced in, we will see a sell-off in bonds.

Short and sweet.

Please remain safe and healthy, Happy Holidays and make today great!