Treasuries “Stabilize”

Treasuries seemingly have found a new level with the 10 year yield hanging in the 2.40% range for the last few weeks. Economic data (construction spending, unemployment, productivity, factory orders) has been bullish, giving the Fed “clear sailing” for next week’s rate increase. Last week’s employment report headline of 4.6% was tempered by a low Market consensus is a 0.25% increase. The closely watched elements will be the accompanying statement, the “dot plot” and Fed Chair’s press conference for the pace of future increases in 2017/2018. stay tuned

David R Pascale, Jr.