Oil prices are on the rise again, sending stock prices down and bond prices up. And there are two other factors that aren’t helping any either.
The Philadelphia Fed Index, which tracks sentiment from about 250 manufacturing managers, was compiled and published this morning. anything below a score of 0 represents a contraction in the sector and is disinflationary. We were expecting a rather chipper reading of 24.1. Instead, all 250 of these labor bosses rallied together with an unexpected optimism enumerated by am extremely bullish 47.4.
Cotality’s Single Family Rent Report shows rents are up 1.5% year-over-year, which is a slightly accelerated pace from last month’s 1.3% increase. For context, rent increases were expanding at a 2.5% rate a year ago, so while this month is more than last, it’s been worse.
Technically, long-term yields and bond pricing are both sitting on top of their 25 day moving averages. This isn’t a big barrier, but it’s a resting place while they gather steam for the next move one way or the other.
