Well we had a good run lately, but today reality comes home to roost and it looks like we will doing a little giving back today.
The 10 year treasury which was at 3.51% before the employment number was released jumped to 12-13 basis points when new jobs for November jumped by 263,000 versus expectations of 200,000. The unemployment rate held steady at 3.7%.
So with this jump in new jobs it is highly likely we will see maybe a 1/2 to 1% giveback in the average income issue—this too shall pass. A good day to observe or maybe if a target issue on your watch list drops a little bit one can pick up some shares.
At this point this singular number will not change my expectations for a 50 basis point rate hike in December–BUT there will be a CPI report on the 1st day of the FOMC meeting—so nothing is 100% for sure–in spite of Powell’s near promise this week to back off increases.
Such is life–always something to worry about.