Show notes:
TMSpotlight:
09-09-2024 Jobs are the “Rock Brigade”
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Jobs are bangin’ on their drums, bangin’ on Bonds’ door, wavin’ their flags, tellin’ Bonds to score. Watch out for the Rock Brigade.
On the eve of Fed easing, inversion ended between the 10-year and 2-year Treasury Notes as Job weakness gained momentum. Flash indicators across the globe showed economic sluggishness, with China leading the way.
Since January 2023, mortgage rates have reached their lowest level, but more labor data weakness is needed to drop further. With the 10-year yield revisiting 3.67, look to see 3.48 while lagging the short end. Regardless, look for our target of sub-6% by the end of the year, which is only 28 BPS away.
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Song: Rock Brigade (1980) Def Leppard
https://www.youtube.com/watch?v=NRYSlLLU0RE