The stock market is spiking as the folks in DC kick the can down the road for a couple months.
Interest rates (as depicted by the 10 year treasury) are up 4 basis points to 1.565%—waiting, no doubt, for the employment numbers tomorrow and further waiting for the CPI and PPI number next week.
It is doubtful that employment numbers will do much to interest rates, although if the number is as bad as last month the talking heads will pose the question ‘will the Fed have to delay the tapering announced?’ Last month (August), as you recall, only 235,000 jobs were created with expectations for around 700,000. For September around 500,000 new jobs are expected.
On the other hand the inflation numbers next week could give interest rates a shove either way–back down into the 1.40’s if numbers were very soft (can’t imagine that) or boost them into the 1.60%’s if they run hot. We’ll see – not one thing I can do to buy/sell in anticipation of what the number will be – just hold tight.