Macro Update - October 9, 2018

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Includes: BIL, DDM, DFVL, DFVS, DIA, DLBL, DLBS, DOG, DTUL, DTUS, DTYL, DTYS, DXD, EDV, EEH, EGF, EPS, EQL, FEX, FIBR, FWDD, GBIL, GOVT, GSY, HUSV, HYDD, IEF, IEI, ITE, IVV, IWL, IWM, JHML, JKD, OTPIX, PLW, PSQ, PST, QID, QLD, QQEW, QQQ, QQQE, QQXT, RINF, RISE, RSP, RWM, RYARX, RYRSX, SCHO, SCHR, SCHX, SDOW, SDS, SFLA, SH, SHV, SHY, SMLL, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TAPR, TBF, TBT, TBX, TLH, TLT, TMF, TMV, TNA, TQQQ, TTT, TUZ, TWM, TYBS, TYD, TYNS, TYO, TZA, UBT, UDN, UDOW, UDPIX, UPRO, URTY, USDU, UST, UUP, UWM, VFINX, VGIT, VGLT, VGSH, VOO, VTWO, VUSTX, VV, ZROZ
by: Robert W. Baird & Co.

Summary

The 10-year T-Note yield has moved to its highest level since 2011, suggesting an end to the generational-long downtrend in yields.

Economic strength, evidence of rising wages and continued tightening from Fed could keep upward pressure on yields.

Rising global rates and commodities and looming supply/demand shifts for Treasuries could sustain this increase.