Bond Vigilantes Are Back (Part 1)
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What’s in Today’s Report:
- The Bond Vigilantes Are Back (They’re Just Not Here Yet) – Part One
U.S. futures are higher with global markets this morning amid a continued relief rally after Trump focused on AI and energy initiatives instead of tariffs on his first day.
Economically, New Zealand CPI came in as expected at 0.5% in Q4 which helped ease global inflation worries.
Today there is just one, second-tiered economic report due to be released: Leading Indicators (E: -0.1%) which is unlikely to move markets.
The Treasury will hold a 4-Month Bill auction at 11:30 a.m. ET and a 20-Year Bond auction at 1:00 p.m. ET. Investors will want to see more strong demand for both short duration and longer duration Treasuries to keep yields from rising again.
Finally, earnings season continues today with PG ($1.87), JNJ ($2.01), ABT ($1.34), KMI ($0.33), DFS ($3.15), and AA ($0.91) all releasing quarterly reports. Generally strong top and bottom line results would be an added tailwind to stocks.
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