September Bond Market

Bond prices dropped during the month of September. Yields moved higher, 48 basis points, ending the trading month at the highest level since the “Great Financial Crisis” and market tanking of 2008. The Federal Reserve kept rates at 5.50% to stay inline with longer-term inflationary goals.

These moves and market conditions show the market is cautious and concerned that the stock market rally has some weakness. A sensitive market is being held up by the evalvated rates. Inflation data and consumer sentiment will continue to be taking the lead on what the equities and commodities will do the remainder of the year. Until investors have more guidance from the Fed and macroeconomic data, traders should take the “better safe than sorry” approach.

Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.