October 2018

QT DRIVING GLOBAL BOND SUPPLY & RISING YIELDS — SOURCE: 10-07-18 – “”Waiting For The World To End” – Bond Rout Bodes Badly For Exuberant Equity Investors” — It was a tough week for stock market investors but the primary driver of the chaotic crumble in small caps and tech stocks was not one of […]

THE CRITICAL TAKEAWAYS FROM THE US “YIELD SHOCK” — SOURCE: 10-04-18 Nomura, Bilal Hafeez – “3 Important Takeaways From The US Yield Shock” — KEY MESSAGES The market is pricing a higher neutral rate (r*), Euro real yields have also moved, The real story could be higher Japanese 10 Year yields Many are likely to […]

AN UPGRADED NEUTRAL RATE (R-STAR) IS RE-PRICING LONG END OF STEEPENING YIELD CURVE Posted:Fri, 05 Oct 2018 10:57:32 -0400 — SOURCE: 10-05-18 – “McElligott: “It’s The Steepener, Stupid”” — In his comment from yesterday, Nomura’s Charlie McElligott highlighted several key ways in which the latest rout in interest rates has been different from previous episodes, most […]

GLOBAL BOND MARKETS HAVE BROKEN CRITICAL LONG TERM TRENDS SOURCE: 10-01-18  Debt Bomb By The Phoenix  – “Will the Bond Bubble Burst in October?” —  The financial markets are now rapidly running out of liquidity. The Fed will withdraw $50 billion in liquidity from the financial system this month via its Quantitative Tightening, QT, program. This is the largest […]

JUNK BOND SPREADS AT LEVELS JUST PRIOR TO THE FINANCIAL CRISIS WITH LEVERAGE WORSE POST FINANCIAL CRISIS LONGER TERM PERSPECTIVE — SOURCE: 10-02-18 – “Junk Bond Spreads Just Dropped To The Lowest Since 2007” — The incredibly shrinking junk bond spread just passed a historic landmark when the Bloomberg Barclays U.S. Corporate High Yield index […]

BOND YIELDS EXPLODE HIGHER ON HOT ADP, ISM & US$ – ALL EYES ON OCTOBER NFP REPORT — SOURCE: 10-03-18 Seeking Alpha, The Heisenberg Report – “What Happened To Treasurys On Wednesday?” — KEY  POINTS On Wednesday, bonds were routed and the selloff was the talk of the financial universe. 30-year and 10-year yields hit […]