Monthly Review
October 2023 – Bond Market Review
Recent economic data continues to suggest positive but below trend growth this year. Labor markets remain solid, and the U.S. consumer has demonstrated resiliency.
October 18, 2023
Recent economic data continues to suggest positive but below trend growth this year. Labor markets remain solid, and the U.S. consumer has demonstrated resiliency.
The US Treasury market rallied this week in a flight to quality move that resulted from the tragic events in the Middle East along with comments from Federal Reserve Open Market Committee (FOMC) members indicating that monetary policy is sufficiently restrictive, therefore they might be done raising short-term interest rates for now.
Inclusive of today’s stronger than expected labor report, the market digested a significant amount of employment data this week. The U.S. economy added 336,000 jobs in September, significantly higher than market expectations of 170,000, and the July and August payroll reports were revised higher as well by 119,000.
