The bond market continued languishing, while, in an out-of-body like experience, observing the DJIA making new highs with the greatest of ease. The S&P 500 made multi-year highs. Multi-year and record highs were also being reached on various bourses in Asia, Egypt, Europe and the U.K., too.
For the moment, stock markets worldwide, is the star of the investment universe.
With nothing new being revealed in the release of the Beige Book, bond prices remained rudderless, the reopening auction of the 9-year 9-month TIPS proved uninteresting, and scraps of bland economic data appearing throughout the day continued.
Members of the Federal Reserve Board are divided over the meaning of current inflation figures. Only unexpected news can kick-start this comatose debt market.
Japan’s central bank kept rates unchanged, adding pressure to its market, and extending the sell-off their government bonds for the fourth consecutive day. Japan’s PPI recorded its largest jump in 25 years.
Their short-term market action could foretell our own marketplace over the next three to six weeks. Plus, we have mid-term elections approaching. Trick or treat.