That initial flight to quality bid on the back of softer overseas equity markets has been present all day.
The Treasury market likes the headline because it was weaker than what it thought.
The results were impressive to say the least. The outlook for consumer spending is a bit brighter than it was a week or so ago.
It's been an uninspired, insipid day of trading. We are biding time for the next big report.
I am getting the sneaking suspicion that there is an inventory situation going on here, which means that growth could be even weaker. That is a bit troubling to me.
There's no question Thursday and Friday's numbers could be a catalyst for a substantial move in the Treasury market.
We think the economy is in recession, and it looks like October is going to be weaker than September.
The bottom line is the productivity numbers were very positive for the market and gives more evidence there is a 'new economy' in place.
The issue in my mind is what kind of recovery we get from here.
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