January 31, 2019 12:45 p.m. Fed Driven Momentum Continues for Bonds -by-Lester Murray

The rally in bond prices has continued into this afternoon as the outcome of the Fed's meeting produced a dovish FOMC statement followed by dovish remarks from Chairman Powell at his press conference. While bond markets are still glowing with yesterday's news (Ten-Year=2.62%), equities have given up a little bit of yesterday's gain with the DJIA down about 75 points at the moment. The previously delayed report on New Home Sales was released this morning by the previously shut-down Census Bureau and the news was surprisingly positive. New Home Sales rose by 16.9% in November against a survey estimate of less than 5%. WTI has slipped to just below $54. Tomorrow is Jobs day and markets are only looking for an NFP gain of around 165k. Earlier today, the private reporting firm of Challenger, Gray, & Christmas reported that Job Cuts rose by 18.7% this month down from almost twice that in December.