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What The Debt Ceiling And Fed Tapering Could Mean For Interest Rate Markets

The debt ceiling debate in Congress is becoming louder, and markets are beginning to price a premium on U.S. debt by the end of the year. The Treasury is spending down its cash holdings by $1.5 trillion, the lowest level in recent times. The Federal Reserve reverse repo activity is at an all-time high to mop up the Treasury’s cash spending.

AAPL

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The Dog Days Aren’t Over: Wait And See Mode For Now As Key Inflation Data Ahead

Whoever thought up the expression “dog days of summer” probably had mornings like this in mind.  Looking around for news, it’s hard to find much. And U.S. markets didn’t move very far overnight. European trading hasn’t provided a lot of direction, either, though stocks did rise pretty nicely across the Pacific in China. 

AAPL

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Vaccine Stocks Climb After Moderna Added To S&P 500, With BioNTech Also Up

The first week of earnings season wraps up with major indices closely tracking the bond market in Wall Street’s version of “follow the leader.” Earnings absolutely matter, but right now the Fed’s policies are maybe a bigger influence. In the short-term the Fed is still the girl everyone wants to dance with.

AAL