Media

CNBC Market Insider


This could bring on the last big hoorah for Fed rate hike talk

The last big blast of data before the Fed meets next week could stir up a final debate Thursday about whether there’s a September rate hike in the offing.

“It’s a bearish bet on Treasury prices. That’s an inverse fund. Money is going into it over the last few days, and it’s a bet that long-dated Treasurys are going down. It’s a short-term indicator,” Kosar said

Kosar said that’s not necessarily a bad omen for equities. “In my opinion, if rates are going higher, knee jerk obviously is bad for stocks. But bigger picture, how I look at that is, if I’m a stock market bull I would much rather see (10-year) rates at 2 percent or 1.90.  At 1.90, the Fed and the bond market are expecting recovery of some kind,” he said.

Click the linked title above to view the entire article.

Asbury Research subscribers can view the recent premium reports from which this article was derived by logging into the Research Center.