Bonds Continue to Bounce

James BarrettGeneral Commentary

 

Bonds had a nice bounce higher today continuing an upswing that began after yesterday afternoons Fed rate hike. A slightly lower start provided an entry without having to reach much for any bulls out there. A higher stock market open especially for the Naz was a little intimidating but other indexes were reluctant to follow and a sharp break midday in the Russell index helped bonds remain higher. The yield curve flattened as usual. Will the market finally have enough gas to break over recent trading ranges? The answer will probably depend on  whether  the stock market ever corrects . The Russell seems willing. Today’s lower close in all three major indexes is a change and certainly  may hint that the tax cuts  influence has been discounted. It’s certainly possible at this point that there may be little boost from  further news about it. Two reports tomorrow, the Empire State manufacturing  read followed by Industrial Production at 8:15.