Wow—wow—the 10 year treasury is now trading at 2.03% after falling down to near 2% on comments out of the ECB that they may need more stimulus with interest rate cuts. That means more rates heading negative in the various European countries.
Then we have the Fed meeting today starting today (ending tomorrow) and the chatter for a rate cut here is growing. We don’t think that is likely to happen–just seems like there is no legitimate reason for it now — the market place is taking care of rate cuts. Plus we are “talking our book” because we like getting 2.35% on our money market funds.
We will be watching closely for economic weakness in all of the statistical releases.