Bond market was very quiet on Monday. No real news to shift the needle. Buyers still outnumber sellers. The 10-yr closed Monday at a yield of 2.60. Manufacturing reports suggest that the economy is getting stronger.
Market sell off post ISM Manufacturing report. This doesn’t help the taper conversation. Could taper halt sooner rather than later? Time will tell.
GDP and Jobless Claims announced. GDP (Gross Domestic Product) rose at a 2.8% annualized rate, which was much stronger than expected. This was offset by consumer spending (up 1.5%) the smallest increase since 2011.Steady growth, but nothing to do a back flip over.
Week ended with non-farm payrolls coming in much stronger than expected. U.S. economy added 204,000 new jobs in October, crushing estimates as well as rates. Despite this, our unemployment Rate is 7.3%, which increased 1/10th of 1 percent.