Well it is just about an hour until the consumer price index for November is released and there hasn’t been a more anticipated inflation number this year – we are just at the cusp of an announcement of the next interest rate hike making the number even more anticipated.
Expectations are for 7.3% (versus 7.7%) year on year with core CPI at 6.1% (versus 6.3%). Numbers more than a 1/10% or two outside expectations are likely to send markets (stocks and bonds) flying–all I can do is cross my fingers for mild reacts (ha ha – the algos don’t know mild – just overreaction).
Yesterday was a pretty quiet day in income issues even though the 10 year treasury rose 4 basis points. This morning interest rates are down a few basis points–really just drifting as we await the inflation numbers. Equity futures are up over 1/2% this morning–futures are always suspect in terms of pointing the way for regular hours trading and of course today they mean nothing–CPI will determine regular trading.
Of course I did nothing yesterday investment wise – kind of the norm for me – once one is positioned comfortably with investments there is little follow up actions required except occasional ‘check-ins’ on my accounts.
So now I will sit back and see what 7:30 a.m. brings us in the way of inflation.