Ok, so it’s not just one guest captain, but a whole fleet.
This weekend I did my usual perusal of macro reading and I couldn’t help but click on each of these articles from Bloomberg contributors and want to share them all!
What the heck is going on with the bond market?
The global slide in bond yields has analysts and traders confused. With trade tensions persisting, worries about the global economy increasing, the U.S. economic recovery chugging along, and inflation rates low or declining in Japan and the euro zone, bondholders are understandably getting a bit worried. Toss in some dovish signals from the Federal Reserve, and you’ve got the right conditions for a perfect storm of concern. Bloomberg Opinion writers chased the darkening clouds this week.
** Bonds Suggest a Ceiling for the Stock Market – Conor Sen
**Those Poor U.S. Bond Auctions Are Adding Up – Robert Burgess
Sovereign Wealth Funds Love Bonds Now. But Why? – Brian Chappatta
The Bond Market Is Now a Giffen Good – Komal Sri-Kumar
Italy and Austria Take the Bond Market to a Very Weird Place – Marcus Ashworth
Jerome Powell Just Locked in a July Rate Cut – Brian Chappatta
**The Fed Satisfies Fewer and Fewer These Days – Mohamed A. El-Erian
Powell and the Fed Have Zero Control Over the Long Bond – Robert Burgess
**U.S. Yields at 3%? Franklin’s Making Too Much Sense – Brian Chappatta
So can a 25bp rate cut end of July compensate equities for the risk of a debt ceiling showdown, China slowdown and earnings growth contraction? Well here is what one network was pitching:
When the Fed cuts rates without a recession, stocks go higher 100% of the time. CNBC
And you thought there was no “Sure Thing” in the stock market 😉
Happy Trading, and despite what you see on TV, don’t forget to hedge.