Wednesday - August 26, 2026
from The Dividend Cafe Hosted by The Dividend Cafe - The Bahnsen Group
Brian Szytel reports markets were essentially flat, while bonds moved as the 10-year yield rose 3 bps to 4.66; oil was slightly lower amid ongoing Strait of Hormuz deal talk. Economic data was mostly positive, but headline PCE was 0.3 vs 0.2 expected (3.7% YoY) while core PCE matched expectations at 0.2 (3.3% YoY), lifting Fed futures to a 40% chance of a September hike, which he views as largely a token 25 bps timing debate into Q4. He previews Jackson Hole and Fed hawk Warsh, focusing on potential balance-sheet discussion amid Treasury plans to issue more short-term debt and buy back about $4B long-term. A listener question prompts discussion of debt absorption, real yields, overindebtedness as deflationary, and currency depreciation as a release valve, citing Japan’s weakening yen alongside rising JGB yields. Other data: durable goods 1.1% vs 0.5%, personal income 0.4% vs 0.2%, spending 0.2, and Q2 GDP unchanged at 1.5% with nominal GDP in the 6s. 00:00 Market Wrap Overview 00:25 Bonds Oil Geopolitics 00:55 PCE Inflation Update 01:38 Fed Hike Odds 02:06 Jackson Hole Treasury Moves 03:09 Balance Sheet QT Talk 04:04 Debt Issuance Explained 05:16 Japan Yen Release Valve 06:04 Other Economic Data 06:45 GDP And Closing Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com
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