The Fed is Still a Far Way From Tightening
We had a good jobs report on Friday, adding 195K workers in June with unemployment holding at 7.6%. And we had some good revisions to previous numbers as well, pushing the three month average to nearly 200K a month. The bond market sold hard on this news, with a quantitative easing (QE) exit all but certain to start in September and tightening being priced in for late 2014. While I’m not one to catch a falling knife – e.g., stand in the way of the one-way bond market sell-off, I think tightening doesn’t happen until 2017.
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