Market Commentary – 3/11/16

U.S. bonds yields continue to rise in response to positive economic data coming out of the U.S. along with a reinvigorated stock market and rallying oil. The 10-year U.S. Treasury yield, which is the benchmark for bonds, is now near 2% as global economic fears have subsided.

There was not much in terms of economic reporting this week. The big news came out of the European Central Bank (ECB), which announced increased economic stimulus to fend off deflation and to spur their economy.

All eyes will be on the Federal Reserve next week and on the outcome from the Federal Open Market Committee’s meeting. The feeling is the comments out of the Fed meeting will be hawkish, which is bad for bonds.

Technically, we are advising with caution to float interest rates and we are monitoring the 10-year note carefully to see if it edges beyond the psychological 2.00% barrier.