Major US indices have now turned into negative territory:
- Dow Jones Industrial Average -7 points or -0.02%
- S&P Index -8.26 points -0.16%
- Nasdaq -70 points or -0.42%
Yields remain low with the 10-year basis falling -5.9 to 4.494% (this week's high was 4.638%). The 2-year yield was down -4.6 basis points at 4.883% (this week's high yield was 5.002%).
Adam warned against “selling the truth” in his blog post yesterday, saying:
“This will definitely be a market driver, and I'm worried about the stock market if inflation is high. There's been a dry spell for Tier 1 data in US markets, but I wonder if we don't see a 'selling of the truth'. What worries me is that the bond market has faded… Fully consumers, despite the low reading.
Now, assuming we don't get a loss of more than 0.1 basis points on a monthly basis, but if it's +0.2% or +0.3%, the surprise might fade, especially with a full calendar of data next week and indicators the market is starting to look at growth data more than inflation. .
This article was written by Greg Michalowski at www.forexlive.com.
