This week we saw U.S. government bond interest rates increase pretty significantly.
We believe that this is attributed to the Federal Reserve chairman going on record stating a “remarkably positive" outlook for the U.S. economy.
Additionally, payrolls data collected by ADP and Moody’s Analytics surged in September to its highest level in 7 months.
Private companies added 230,000 new positions in September, beating the expected 184,000 figure by roughly 25%.
This suggests that the U.S. labor market is doing pretty well.
Looking forward, it’s our view that volatility may start to pick up because of rising interest rates.
Given the strong economy, we may begin unwinding cash positions to increase exposure to stocks as opportunities present themselves.
Have a great weekend,
U.S. government bond interest rates data was observed via Bloomberg Terminal during the market week of 10/1/2018 - 10/5/2018. The Chairman of the Federal Reserve's quote of a "remarkably positive" outlook for the U.S. economy was referenced in the Bloomberg article "Powell Heaps Trump-Like Praise on Economy as Rate Hikes Loom" by journalist Rich Miller. ADP payrolls labor market data was referenced from the Bloomberg article "Companies in U.S. Add Most Jobs in Seven Months, ADP Data Show" by Sarah Foster.
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