It’s Three Strikes and You’re Out…

  • November 20, 2013

It’s been quite a day at the ball park for the bond market. The stands were packed with eager investors ready to buy or sell bonds today, depending on how economic data StrikesCartoonshook out. We stepped up to the plate this morning eager to hit a home run, then…

  • The Retail Sales Report came out stronger than expected and caused early morning damage to bond prices. Strike 1.
  • Around 10:20 am EST a Bloomberg story suggested the ECB may consider a negative deposit rate. Strike 2.
  • Right before the closing bell another Federal Banker threw us a curveball. Bullard stated December is still a taper target depending on employment data. Strike 3.

Didn’t Janet say she would keep buying bonds? Maybe she can storm the mound.

The bond markets swung for the fences, but never fully recovered after that; losing over half a point by the closing bell. Tomorrow is a big day with Jobless Claims due out in the morning. If the number comes in strong it may support Bullard’s prediction that December tapering is still a possibility.

By Lindsey Fediuk, Quicken Loans Capital Markets Analyst

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