Modestly Stronger With Bonds Tracking Stock Losses
Modestly Stronger With Bonds Tracking Stock Losses
It was a pretty straightforward overnight session with a very high degree of correlation between bond yields and stock prices. The final leg of the rally arrived on comments from NY Fed Pres Williams who said he sees room for a December cut. As a reminder, apart from Powell, Williams is the most important voice at the Fed and his comments carry more predictive weight than others. While the initial reaction was favorable for bonds, it was also favorable stocks--so much so that it put an end to bonds' rally momentum for now.
Stronger overnight, mostly in line with stock losses. Some additional gains on Fed's Williams' rate cut thoughts. MBS up just over an eighth and 10yr down 2.6bps at 4.059
Bonds Hold Decent Gains, But With How Much Help From Stocks?
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Friday, Nov 21 | |||||
| 7:30AM | Fed Williams Speech | ||||
| 8:30AM | Fed Barr Speech | ||||
| 8:45AM | Fed Jefferson Speech | ||||
| 9:00AM | Fed Logan Speech | ||||
| 9:45AM | Nov S&P Global Composite PMI | Nov | 54.8 | 54.5 | 54.6 |
| 9:45AM | Nov S&P Global Manuf. PMI | Nov | 51.9 | 52 | 52.5 |
| 9:45AM | Nov S&P Global Services PMI | Nov | 55.0 | 54.6 | 54.8 |
| 10:00AM | Aug Wholesale inventories (o (%) | Aug | -0.2% | 0% | |
| 10:00AM | Nov Sentiment: 5y Inflation (%) | Nov | 3.6% | 3.9% | |
| 10:00AM | Nov U Mich conditions | Nov | 52.3 | 58.6 | |
| 10:00AM | Nov Consumer Sentiment (ip) | Nov | 50.5 | 53.6 | |
| 10:00AM | Nov Sentiment: 1y Inflation (%) | Nov | 4.7% | 4.6% | |
| Monday, Nov 24 | |||||
| 1:00PM | 2-Yr Note Auction (bl) | 69 | |||
