With year over year inflation at 8.6% you can be certain that talk of a need for a 3/4% hike in the Fed Funds rate will heat up and will likely temper talk about a rate pause in September. So much for reaching peak inflation earlier this year.
The 10 year treasury is now trading at 3.02%, down from 3.04% yesterday,which seems very muted, as the futures markets show stocks falling over 1%.
What does this mean to me in terms of investing my dry powder? Very little. I have plenty of dry powder and will continue to nibble a bit on a weekly basis—no hurry as we have plenty of time to deploy that dry powder. I continue to look for 6% or so in investment grade and over 7% in junkier issues..