U.S. equity markets continue to drift higher as the absence of negative news has allowed markets to rally. Given the relatively stable flow of news expected on the economic and domestic monetary policy fronts, I anticipate markets will continue to grind higher for the remainder of the year. However, global trade and domestic politics remain wild cards for the rest of 2019. It’s tough to make predictions in these areas given the many counterbalancing forces impacting both.
U.S. Treasury rates are also likely stuck in a narrow range as inflation expectations are relatively stable. I would expect the 10-year Treasury to trade within a range of roughly 40 basis points from today’s level.
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