Quote:
Originally Posted by tabs
75k when 180k were expected.
Powell says, "The FED will be closely monitoring the economy and will take the appropriate action. " That is comforting to know.
"1.75% by years end for the 10 year" some think it will push all time lows in the 1.3% range.
It is rather perverse to think that bad economic tidings drive the sp higher. That is Alice In Wonderland. So the question becomes what is wrong with this picture? What fuels that rational and makes it operative?
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Those bond rates are set by market expectations and not by the Fed.
Buyers are concerned about global economic health so more money tends to move to bonds and out of more risky holdings. When more money chases bonds the price is higher which translates to a lower yield.
Basically, bond buyers are concerned about economic growth and are trying to lock in long term rates that they think will be lower moving forward.