Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.

Hello and welcome to the Tuesday edition of DC today. It is a much nicer and sunnier day here in New York City, even though the traffic and overall commotion of a presidential visit combined with the UN General Assembly is still quite massive.

Yesterday, taking all that and combining it with the rainstorm. It was a surreal experience

here in the east side of Manhattan. But things have settled a little bit. And markets today as well,

not anything super exciting. The S&P was down 20 basis points. NASDAQ was down about a quarter of

percent. The Dow at one point was down

300 points, but even it closed down only 100 points. And we go into the Fed Day tomorrow. Oil hit

a 10-month high this morning. Let's see, where did it close? It closed just barely up, but still

right around $91 a barrel.

Bonds continue selling off, yields moved higher.

Again today, the 10 years, as a matter of fact, was up,

almost five basis points up to 4.37%.

So you continue to see upward movement and yields,

pushing bond prices a bit lower.

Interestingly, I noticed the last month the Japanese ownership of U.S. Treasury bonds went up by $7 billion.

Chinese ownership went down by $13 billion.

So you don't have any big movement in category of ownership that explains some

of the supply issues. If anything, it's just kind of shifting around within the categories,

more from one country, less from another, a little less from the Fed and more from

the private sector, things like that.

Off the subject of the extremely interesting U.S. bond market is this UAW strike, the United

Auto Workers, right now it appears that they're going to increase the stations at which they are picketing and striking by this weekend.

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