another trading week is in the books
here on Wall Street's here's the New
York minutes for October the 14th we had
a strong day in Europe and the opening
here in in Wall Street but that soon
dissipated stocks ended up largely fat
for the day and that was because of
changes in fixed income and currencies
the dollar is strengthening very
noticeably at present you can see it's
right back up to the top of its recent
range and that is because bond yields
Treasury yields are also rising very
sharply the 10-year yield has almost got
back up to 1.8 percent inflation
expectations are also rising for the
state's still at a very low level but
right back up towards the top of their
recent ranges now all of this is because
there is now a belief that the Fed
really is going to be raising rates in
December of this year however if you
take a look at implicit forecasts for
rates by the end of next year people
still think it's only really a 50-50
shot that they will have raised rates
once more by then there is still a
belief that the Fed is fundamentally
dovish even though there is a great
concern about rising inflation and a
strengthening dollar it's an
unappetizing mix and it explains why
stocks gave up their gains for today and
that's the New York minute