Good Tuesday AM,
Bond prices are up this morning, helping rates move marginally lower making up much of what was lost yesterday. From a technical standpoint, we do need to close back above the 50 day moving average soon. That will allow for better rates. If we cannot close above that line in the sand, we will end up sliding the other way. That is no bueno but likely doesn’t hurt too badly. The news today has not been a factor in bond prices. Existing home sales fell for the 4th consecutive month, but did slightly beat expectations. These higher prices are having an impact on affordability and slowing the market. There is some more important data this week with GDP, Durable Goods and Jobless claims tomorrow. Friday has personal income and if you want to look farther ahead, next Friday is the jobs report. Before we get to any of that, we do have some prepared testimony from Fed Chairman Powell a bit later today. He will discuss inflation being transitory and employment firming up, but it will be some of the q&a that will move the markets off of where they are now. The lock/float probably leans towards floating but also be a bit more aware today as the Chairman’s statement has potential to create volatility.
Here’s a little fun fact… On this day in 1775, Congress authorized the first issuance of continental currency, or U.S. paper money. Officially known as “Continentals,” the money soon came to be called “shinplasters” as high inflation rendered it nearly worthless. Inflation has been around since longer than the US Dollar (or the US for that matter… simple supply and demand, every time).
Please remain safe and healthy, make today great.