The 10 year treasury is off 10 basis points or so today—trading as low as 3.58%. Overreaction to Powell’s speech yesterday? Who knows, but it is favorable to us.
Today in 45 minutes we have the PCE price index release–this could totally reverse yesterdays gains–not a prediction just a possibility. The index was 6.2% (year on year) last month. The core index was at 5.1% year over year with a forecast for 5.0%. So anything at forecast or slightly below would let the rally continue for a day or two more.
During the course of the day we have numerous reports being released as can be seen below. There are 2 Fed yakkers–after Powell yesterday they will not move markets.
Or course tomorrow we have employment numbers–very important to show a little softness to keep a 50 basis point rate hike going for December (although I think it is all but guaranteed now).
And some fixed rate issues have fallen further behnd their corresponding fixed-to-floaters. Seems backwards to me. Rates won’t go uo much more but they’ll stay there a long time?