The bond market was slammed on November 6th as yields rose on the surprise NFP beat. I said that I expect the rate rise hype to be watered down and that is what we have seen this week. There has been terrible retail data and a number of other metrics that reflect the real U.S. economy. This is a perception game, it has nothing to do with when the Fed actually raises rates. There will be no rate rise in December or any time in the near future. There was a visible shift to risk off on Friday out of stocks and back into bonds.
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