Bond Yields Not Eager to Follow Stocks Lower
Bond Yields Not Eager to Follow Stocks Lower
Bonds were initially stronger in the overnight session with 10yr yields briefly falling under 4.90%. The rally generally aligned with overnight losses in the stock market, at least at first. When European markets came online, bonds began drifting more sideways even as stocks gradually declined to new lows. Given that today is month-end and that much of this month has seen quite a lot of volatility, it's reasonable to expect compulsory month-end trades to set the tone. Translation: bonds could do their own thing for their own reasons regardless of what's going on in stocks. Some analysts are reporting that month-end rebalancing models are calling for selling some bonds and buying some stocks, but we wouldn't lose sleep over that one unless stocks end up surging into positive territory.
Tech Jitters are Back. Bonds Like It
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Friday, Oct 30 | |||||
| 8:30AM | Q3 Employment costs (%) | Q3 | 0.8% | 0.8% | 0.9% |
| 9:45AM | Oct Chicago PMI | Oct | 55.3 | 56.1 | 58.8 |
| Monday, Nov 02 | |||||
| 9:45AM | Oct S&P Global Manuf. PMI | Oct | 56 | 55.9 | |
| 10:00AM | Oct ISM Manufacturing Employment | Oct | 52.7 | ||
| 10:00AM | Oct ISM Mfg Prices Paid | Oct | 77.5 | 77.9 | |
| 10:00AM | Oct ISM Manufacturing PMI | Oct | 54.7 | 54.5 | |
| 10:00AM | Sep Construction spending (%) | Sep | 0.6% | 0.9% | |
| 2:00PM | Loan Officer Survey | ||||
| 7:00PM | Midterm Elections (%) | ||||