Big weak in a big week?
Posted by Eric Skates on
Of course we have Fed tomorrow, but a pretty big day of data in what will be a big week for rates. So far so good. The data is weak. Retail sales negative, PPI negative, NY manu flat. Most importantly, prior month sales revised down pretty hard. Not only is that jarring in itself, but it brings some lower expectations for GDP which is a direct hit to Fed intentions. First reaction solidly positive for rates, but nonetheless cautious. We are still banging around near-two month highs in yields, so anything short of a Fed bomb tomorrow gives us a bit more room to run yields down v up. As I write we are creeping down toward 1.90, but seemingly stalling @ 1.92. Would love to get back into the 1.8s today.
More to follow…
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