There were 178,000 new jobs created last month, with the Unemployment Rate dropping to 4.6%, the lowest since August 2007. The bond market is seeing this as a good sign, giving back almost all of the losses from the last two days. Investors seem pretty eager today to jump into debt holdings, without selling off equities (stocks). Speaking of debt, here is a fun fact: the national debt has doubled in the last ten years, but the payments have stayed the same because the interest rates have been so low. The debt is now so large that if we were to balance the national budget and generate a $50,000,000,000 (billion) surplus each year without incurring any new debt, it would still take 460 years to pay it off. Kind of makes 30 year loans seem like child’s play, doesn’t it?
I see interest rates holding these levels until the 16th when the Feds meet again. Have a great weekend!