Might as well simply figure that the business news will be dominated by speculation over what the Federal Open Market Committee will announce tomorrow midday.
We don’t need to speculate as the Fed Chair has backed himself into the corner with his congressional testimony and will have to deliver a 1/4% cut to interest rates. To do otherwise would tank the stock market, God forbid, and who wants to be the one to stop that party.
As we have mentioned, and we admit “talking our book”, with an economy that is growing around 2% and employment which is very strong there is no reason to lower rates. Sure the global economy is kind of weak–but no one can save Europe, demographically they are becoming Japan and to push on a string is a waste of our effort.
We are somewhat resigned to the cycle of issuers redeeming issues and sticking us with a lower coupon–but that is ok–companies need to do what they need to do and we need to find a way to earn a little reasonable return. That is what this game is all about.