October 28 2016 Market Minute

October 28, 2016

Rate Roller Coaster. The 30 Year US Treasury is back up to 2.61%. The same level it was back in the Spring of this year before heading down to the years low of 2.102% The “Long Bond” has now made a “Round Trip” going first down, then up “One-half of 1%” or, “.50%” , or “50 Basis Point” move in the last 6 months. This is a big move. It happened 2X this year especially when considering it made GDP grew at 2.9% in the 3rd Quarter of 2016, after being ‘adjusted’ for inflation and seasonal adjustments. This is the fastest growth in two years. Much faster than the 1.4% in the 2nd Quarter. If you remove ‘changes in private inventories’, of which is quite volatile, it was up 2.3%. There will, however, be at least (2) revisions to this number.

Source: WSJ, Thompson One Financial

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