April 3, 2019 Bonds Slipping, but it's not a Slide by Lester Murray
Treasury prices continue their downward slip this morning, but the move has been minimal and the move in yields has been just as minimal. The Ten-Year is looking pretty comfortable at 2.50% against a Two-Year in the low 2.30's%. Equity prices worldwide are benefitting from the same news that has been providing benefit of late; the trade talks with China are going well and it looks like Teresa May might negotiate an extension in the Brexit melodrama. Would this be season three or season four? Domestically, a report late yesterday from the Ward's Automotive Group showed that car sales got pretty revved up in March. The report tallied 17.5 million sales (annualized) in March versus an expectation of just 16.8 million. Disappointingly, the ISM Services Index dipped more than expected to 56.1 from 59.7, but here's a bright spot: New Mortgage Applications (a weekly measure) jumped by almost 19% last week. Go buy a house! Don't forget, new Jobs Report comes out Friday.
Posted on Wed, April 3, 2019
by Lester Murray