Happy New Year everyone!
So sorry for the 2 week + gap in posts, the holidays were simply crazy on us this year and trying to get back into the swing of things again for regular market updates.
First and foremost I hope everyone had a fantastic 2015 and I expect this year to rival if not possibly be even a touch better than last.
Lots of data rolling out this week but with China halting trading today I think that should bode well for safety of US Treasuries and bonds and likely help our long term rates. As many expected last December (and I did not think she would do it) Fed Chair Yellen did raise the overnight funds rates a measly 25bps and it did NOTHING to the rate market as it was already priced in for that to happen. With the feds position and belief that the economy is recovering its likely not the last increase, so expect incremental increases throughout 2016 as the feds try to increase rates without stalling out a still fragile economy.
NOW is a great time to be looking before more increases come into play.
here is today's data...
We have a heavy data calendar this week as we return from the holidays to kick off 2016. The data begins with Construction Spending and ISM Manufacturing today, followed by ADP, the Trade Balance, and Durable Goods Orders on Wednesday, and lastly followed by the Unemployment Report and Nonfarm Payrolls on Friday. Construction Spending slumped in November, down 0.40% (consensus +0.60%), following a 0.30% advance in October. ISM Manufacturing slipped to 48.20 from 48.60 prior (consensus 49.00). Treasuries are up this morning and the curve has flattened with 2s10s