Newsclips
Employment in Pictures – Another Huge Beat
October 6, 2023
This morning's big payrolls number pushed up the odds of another Fed hike slightly, but traders remain non-committal.
This morning's big payrolls number pushed up the odds of another Fed hike slightly, but traders remain non-committal.
Today's topics include the bond market in focus, Grantham continues to beat the bubble drum, visualizing 2023 worker strikes, looking at bank stocks, debt issuance, American labor market, and is anyone studying accounting anymore?
Non-financial corporations are getting a bigger benefit from higher interest income than the drag from higher interest expenses. Consequently, their financial position is improving. This may be why higher rates are not hurting the economy.
Personal interest expenses are eating up a larger portion of households' income.
The dollar is in the midst of its longest consecutive streak of weekly advances since the currency began freely floating in the 1970s.
Since the COVID-19 pandemic, bullish sentiment has been scarce. We have argued that the bond bull market ended in 2020 and we have entered a period of rising rates, yet there continues to be a directional skew or "hope" for lower rates.
In the last six auctions, dealers bought less than 15% of the 10-year notes offered, on average. In contrast, investment funds are now taking down almost 62% of the average auction.
How big are the Fed's holdings of bonds, notes, bills, TIPS, MBS, agencies, and FRNs in relation the outstanding market?
A long-term look at retail gas prices
Some interesting charts from our recent posts
Today's topics include previewing tomorrow's payrolls release, distinguishing bull steepenings from bear steepenings, higher rates make recession more likely, quantifying bonds' fall, do deficits matter again?, rising issuance, and Bill Gross sees P/E ratios falling