If you have been following us long, you may notice we hone in on various items with sometimes excruciating detail. Of late, interest rates may be an area you have become fatigued, but they are that important at the current time.
Not OCD, but reactive .. It changes
While it may seem at time we jump from one thing to another, we are bringing you the details of what is most important (high level as we never talk exact investments) at any given moment, in our opinion. 
Recent the CPI (consumer price index) or inflation gauge printed a hot number and caught our attention.
Here are a few cause and effects:
- Head Fake (always a possibility)
- The economy is on the mend and it is just right, Goldilocks
- Higher interests rates: Headwinds for fixed income instruments (mortgage, corporate, Treasury)
- FOMC has to increase the taper speed and maybe increase rates at a faster pace
- Commodities and other tangible items accelerate in value
- Pressure on Capital Markets
So while it may seem we jump around a bit, things change and importances do as well!
Have a Great Day!
John A. Kvale CFA, CFP
www.jkfinancialinc.com www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225
$treet-¢ents 
Continued Improvement in the US Economy … Monthly BLS Employment Report .. Unemployment Rate, Interest Rate Reaction
On Friday, August 6, 2021 the BLS (Bureau of Labor Statistics) released the prior monthly (July 2021) employment related report. It is worth noting these are preliminary and will be adjusted in future months, but usually major adjustments are not in the picture….
Bottom Line:
943k hires in the month of July … NICE
5.4% Unemployment Rate as of July …Getting there (lower is better of course)
10 Year Treasuries Took note
BLS Unemployment Report for July 2021
The following Chart from the BLS may look unenthusiastic at first glance….. but hold on!
With the DRAMATIC volatility from the past year, the longer term chart does not give a true recent view…. Let’s look a little closer …. Much Better!
In much the same vein as above, the year view of the Unemployment rate does not look like a big deal as can be seen by the next chart!
On second thought, again with a closer view….. NICE! (We want a downward trending chart when measuring Unemployment)
10 Year Treasuries Wake Up
A measure of future expected growth, after some wrong sided players (shorting the 10 year in expectation of much higher rates faster) blew up pushing yields possibly incorrectly lower….
From Business Insider here
A hedge fund reportedly lost $1.5 billion in a bond market short-squeeze as bets on rising rates turned sour
These Good Economic Numbers put yields on the move higher (far right of chart)!
Continued improvement would likely force the FOMC to slow asset purchases…. as discussed here much desired by many !
Have a Great “Good Economic News” and analysis Monday!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Economy, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Retirement Planning
Tagged 10 Year Treasury, BLS, FOMC, Interest Rate, Interest Rates, Taper, Unemployment Rate, Unemployment Report