February 8, 2019 Bonds Still Up, Stocks Still Down by Lester Murray

With no domestic economic numbers out today, the momentum from yesterday's bond rally continues with the help of more dovish Fed-speak, this time from a new source.  San Francisco Fed President Mary Daly counselled patience for those policy-makers contemplating more rate hikes. While speaking with reporters about inflation, Daly reminded everyone that those measurements "have only grazed the 2% mark, we haven't sustainably hit the 2% mark."  Although not a voting member in 2019, those are not the comments of anyone anxious to raise rates without a little more data justification.

The Ten-Year Treasury yield has dropped a few more basis points to around 2.63% while the DJIA has been dealing with red ink since this morning's opening. On a hopeful note, media reports out of Washington suggest a potential border security plan amenable to all is near completion.