Wow with the Dow up 600 points (1.88%) and the S&P500 up 1.55% you would think a ‘pause’ had already been announced in interest rates–the bigger the party the larger downside risk to a disappointment.
While the 75 basis point hike in interest rates on Wednesday should be baked into the cake–I don’t think that Powell is going to talk seriously about a pause–too much data to be looked at between now and December and I don’t think the Fed Chair really would be thrilled with all the stock partying going on–he doesn’t really want to be seen as a lackey for the stock market. But the markets will do whatever they do.
The 10 year treasury has bumped up 6 basis points today–that’s enough for now–keep the movements manageable.
Overall just a little movement higher in income issues, but I did notice the Arbor Realty 6.375% perpetual (ABR-D) issue has moved higher by over $1/share. I am sure there are others jumping up after hard selloffs in recent months. Disclosure – I own this issue.
As expected I am doing nothing at all–watching.