November 1st fell on a Friday this month. If the 1st would have been on Thursday, Thanksgiving would have been celebrated last week and we’d be recovering from Bloody Friday, I mean Black Friday’s shopping spree. President FDR altered Lincoln’s ‘Final Thursday of November’ setting of the date to the 4th Thursday of the month in an effort to get people to do more holiday shopping.
Last week markets were rocked by the minutes released from the last FOMC meeting. Clear discussion was made that the bond purchasing QE3 could begin to be tapered sooner than later, if the economic data was positive enough to support it. This rocked the bond market on Wed and caused rates to jump up about .125 – .25% during the day. We’ve recovered about half of that loss in the last 3 trading days thanks to some weaker data last Thur and Friday. The data seems to be positive than negative, back and forth. Who knows what to believe right now with all the conflicting economic data? Just know that the market reacts very fast to positive data, causing rates to go up quick, and slowly to any negative data. Not a whole lot on the calendar for us this week, shortened by the holiday. Bond markets will be open a half day on Friday but trading should be slow.
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