Rates Fell Before A Long Weekend? Happy Thanksgiving Indeed

Rates usually go UP before long weekends.

But today rates fell sharply again – ostensibly because today’s PCE inflation report came in as expected.

X is littered with posts predicting another bond market sell-off (which would push rates way up).

But X is also littered with posts telling us that the earth is flat, that we never landed on the moon, that the world will end tomorrow, and – the craziest of all – that boba tea tastes good!

So, I give them little credibility. The boba tea posts alone were enough to send me to an alternative platform.

Anyway – it again appears that the soft economy/cool inflation thesis is winning out over the hot economy/hot inflation thesis (at least in the eyes of tens of thousands of bond investors).

TLDR: Rates fell sharply and this is one more reason to be thankful this Thanksgiving.

Happy Thanksgiving from all of us at JVM Lending!