Just like THAT!
Just when you think things are about to turn around in the rate markets, we get a brutal CPI report and a weak 10yr note auction that drove the bond prices lower and rates soaring! What makes it worse is that forecasters across the spectrum didn’t see this coming. NOBODY!
Today we are going to get PPI numbers, along with initial and continuing claims on employment; and if that isn’t enough, we will see a 30-year bond auction this afternoon! All of which can be market movers! Oh, I almost forgot, Friday we have even more data that could move the markets when we see retail sales figures, industrial production figures, and finally, capacity utilization as well!
I’m not going to lie; I was thinking like everyone else that we were going to get decent numbers and possibly some momentum toward lower rates. Now I am just hanging on to see what happens today and tomorrow in hopes that we can stabilize.
Really important that you stay on top of the volatility and keep your clients and referral partners informed. These kinds of movements can be disturbing to those who think they are at one point, but the markets have moved away from them. For some, it’s just a minor cost increase, for others, it can throw all the ratios out of whack and make things very messy! That is why you need to have conversations with your clients and referral partners about price volatility and possible impacts on their situation!
Keep your eyes open this morning and later today and be prepared. Better to know what is coming and have it be nothing, than to not know it and have it be something! As always, questions or comments [email protected]
