Back to Work, Back to School, Back to Buying Bonds?
Back to Work, Back to School, Back to Buying Bonds?
Abstract
The holiday season was unmistakably marked by a strong bias toward selling in the bond market. All we could do was watch the weakness and hold out hope that the market was playing the role it often plays over the holidays. One of the most promising developments so far is the presence of roughly 20 new corporate bond announcements (that's a lot) Normally, a big day of corporate issuance would be pushing yields noticeably higher. It's not enough to singlehandedly promise additional gains. But it does suggest bonds will be receptive. The resilience of that issuance is a good sign for new year momentum, all other things being equal. It does suggest Bonds will be willing to offer additional gains, but it does also suggest bonds would be receptive if the incoming data is friendly.