What do you know? Interest rates can go DOWN, too! In fact, they’re tanking as Treasury bond prices rise on some encouraging news from the government (more in a minute).
Stocks are piggybacking on the rate move, rallying across the board. Crude oil is higher, while the dollar is flat along with gold and silver.
Bondholders entered today’s session on pins and needles ahead of a key Treasury Department announcement. But the news about how much long-term debt the government would sell at next week’s quarterly “refunding” turned out to be better than expected.
Specifically, the government said it would sell $112 billion in longer-term securities. That came in under forecasts of $114 billion – and the news caused long-term interest rates to drop sharply (for a change).
That said, the Federal Reserve is wrapping up its latest policy meeting as I write. There is virtually no chance the Fed will raise interest rates today. But markets will be closely watching what policymakers say about their outlook. Right now, rate futures markets are pricing in only a 21% chance or so of a hike at the last meeting of 2023, which concludes Dec. 13.
Finally, the rise and fall of temporary workspace/technology sector unicorn WeWork has truly been a sight to behold. And now, the Wall Street Journal reports that the company is on the verge of filing for Chapter 11 bankruptcy.
The firm has 777 locations in 39 countries where people use temporary office space to get work done. It was once valued at $47 billion – and led by a lionized tech sector guru Adam Neumann. But he was ousted in 2019 amid various controversies, and the firm has been hemorrhaging cash due to crushing lease obligations and other issues.