After a week of falling interest rates it looks like we will have a bit of a change of direction today as the 10 year treasury yield is around 4% this morning – up from 3.94% yesterday – let’s hope we can keep rates in the 4% area, or at least have movements that are modest day to day.
Even with falling interest rates all week I have seen little (or no) movement in my portfolio as prices do some ‘backing and filling’–the good part is at least values didn’t drop more and patience will be rewarded–eventually.
Yesterday we had GDP announced for the 1st quarter and it was stronger than anticipated while durable goods orders were softer than expected–so a mixed bag. Today we have the personal consumption expenditures price index deflator being released at 8:30 a.m. with consumer sentiment at 9 a.m. and the pending home sales index coming at 9 a.m. as well (all times central time). The PCE has potential to move markets.
It is almost time again for the FED to hike interest rates–Wednesday next week. This will be a wild day–all focus on the press conference after the 3/4% rate hike. Markets are probably set up right now for huge moves that day–hints of a pause send prices skyrocketing up while a hawkish tone will send prices plunging.
Today I will likely do nothing–after being out of the office yesterday I need to review numbers and see where I might add shares and I am not in a rush to buy.