Yields pushing higher
US 2Y yields hit their highest since July 2006 US 5Y yields highest since Aug 2007 US 10Y highest since Nov 2007 US 30Y highest since April 2011 Source: Bloomberg, www.zerohedge.com
Inflation fear is NOT the driver of rising yields
Indeed, 10y real yields (10y nominal yields - 10y inflation expectations) jumped to 2.11%, the highest since 2009. In other words, investors are demanding higher REAL yields in the face of political chaos in Washington and high debt. Source: Bloomberg, HolgerZ
The longest duration bond ETF is now down 60% from its peak in March 2020
How is that possible? The 30-Year Treasury yield has moved from an all-time low of 0.8% in March 2020 up to 4.6% today. Long duration + Rising interest rates from extremely low levels = Pain $ZROZ Source: Charlie Bilello
In case you missed it...
US Jobless Claims Fall to 201,000, Lowest Level Since January...There haven't been many times in the last 50+ years that #us initial jobless claims have been lower. Source: Bespoke
How long it took to Billionaires to earn their first $1 million?
Source: Genuine Impact, Forbes
Turkey CenBank raised main interest rate to 30% from 25%, but w/inflation at ~60%, real rates are still very heavily negative
The hike continues what many see as a return to more orthodox monetary policy under Governor Hafize Gaye Erkan, a former executive of First Republic Bank & Goldman Sachs, who was appointed in June after President Recep Tayyip Erdogan won a close-fought re-election. Erkan now hiked rates by a cumulative 2150bps. Source: Bloomberg, HolgerZ
VIX seasonality perfection???
Source: Equityclock.com, TME
Oil, diesel crack sread soar after Russia bans diesel, gasoline exports
With Diesel prices already soaring, recently sending the diesel crack to 2023 highs and assuring that refiners have another blowout quarter, Russia just handed a gift to the Exxons of the world when it "temporarily banned" exports of the diesel in a bid to stabilize domestic supplies, adding pressure on already tight global fuel markets. “Temporary restrictions will help saturate the fuel market, that in turn will reduce prices for consumers” in Russia, the government’s press office said on its website. The "temporary" ban, which also applies to gasoline, comes into force today, Sept. 21, and doesn’t have the final date, according to the government decree, signed by Prime Minister Mikhail Mishustin. Source: www.zerohedge.com, Bloomberg
