Everything continues to be fairly unidimensional for bonds this week with the dimension in question being that of the equities market. In terms of relative movement, we can still say the bond rally is “reluctant” compared to what’s going on in stocks (see the lower half of today’s chart).
Nonetheless, we’ll take what we can get in this rising rate environment–especially in the month of October, which had seen the highest yields in more than 7 years.
Today’s key data release is Q3 GDP. Whereas we don’t normally look to GDP for much market-moving relevance, today stands some chance to be an exception because it’s the first reading for the quarter (whereas the next 2 will be revisions of the same quarter). That said, investors could still opt to trade earnings or momentum in stocks, and that would likely continue to set the broader tone.