There is a common theme that economic fortunes look brighter in Japan and continental Europe than they do in the U.S., ... Even though higher rates should help the currency, they haven't because most people are seeing that as the Fed's move to slow the economy and reduce growth.
If we do see additional absorption of spare labor market capacity, that could mean more rate hikes through the summer.
The new issue calendar had dried up for all kinds of issuers. But now, the corporate calendar is building again.
The new issue calendar had dried up for all kinds of issuers, ... But now, the corporate calendar is building again.
I look for them to cut rates at least once or twice more this year.
The data will generate a debate at the Fed about how many more rate hikes there will be.
That type of growth is not sustainable, and we're headed to a more moderate pace this year.
It shows that the upturn in interest rates is indeed beginning to exert an influence on this rate-sensitive sector of the economy.
The bottom line message is that the labor market activity remains robust, and that's not the environment that would suggest a need for a Fed rate cut.
I get the impression he is building the market up to expect a rate hike at the June Federal Open Market Committee meeting.
If the unemployment rate is weak, look for the Fed to cut interest rates by a full 50 basis points (half a percentage point).
What that suggests is that the recovery in corporate profits may not be as strong as expected.
Corporate bonds are filling the void, to some degree. But this does not pave the way to a rally in bonds.
There were questions developing in the market late last week regarding the tenor of Greenspan's speech ... (and) it seems as if the potential that there won't be a rate cut is weighing negatively on the Treasury market.
January could prove to be a very difficult month for bonds, just as December was. Long-term interest rates rose anywhere from 35 to 40 basis points last month, and we're obviously starting January on a very weak -- if not suspect -- note.
To have this quick of a reaction in terms of rate cuts, ... suggests that the Fed was seeing crunch-like conditions.
There's no doubt the market is on the defensive and is preparing for what appears to be inevitable. A rate hike at the August policy meeting later this month.
There's no doubt that this rate cut and interest rate decline provides liquidity,