1. Does the Fed Need to Raise Rates?
Rates already rising, even though U.S. economic data is tepid.
Indeed, LIBOR rates continue grinding higher and the TED Spread has widened sharply…3 month Libor up 145% off low base.
1.Emerging Markets ETF Rallies Right to 200day.
EEM Stopped at 200day …Red Line on Weekly Chart.
1. 26% Move Up in 10yr. Treasury Yield….33bps. Move is Less Than One-Quarter of the 138bps. Move During Taper Tantrum (May 2013).
TNX-10yr. Yield Chart.
1.High Yield Bonds–HYG has seen $1B in Outflows in the last week (Bloomberg), and has closed under the 50dma.
The outlook for consumer spending is significantly supported by the increase in home prices seen over the past three years, see chart below.