Bonds Pushed to the Green

Jerome Powell made his first public appearance as Fed Chairman in Jackson Hole today, and then went on to make his speech to kick off the festivities. Durable Goods missed big this morning, but it wasn’t near the market mover one would expect as bonds were down a few ticks, and stocks didn’t seem to take notice either.

What stocks and bonds both seemed to like were the comments of the Fed Chairman. Bonds pushed to the green and stocks are continuing their pursuit up in the direction to the January highs.

Bonds have been in this area all week, and while they traded at this level back in July and fell, they are above the moving averages this time. If the 10-year Treasury breaks below this 2.8 level, bonds look like they could break out and give us a shot at lower rates. However, this area was a reversal point before, so we will give them a chance to break with a very cautious floating bias.