In case you missed it:
After bank of japan abolished negative interest rates this week for 1st time since 2016, the volume of bonds with negative interest rates has shrunk to $300mln. At its peak, there was a volume of $18tn worth of bonds with negative rates. But this weird experiment seems to be over – for now. Source: HolgerZ, Bloomberg
#ChartOfTheDay: European High Yield Faces CCC-Rated Headwinds 📊
European High Yield markets encountered headwinds last week, particularly among the weakest issuers with CCC ratings, which experienced a notable decline of -0.7%. This downturn was fueled by renewed credit concerns, exemplified by significant drops (-30 points) in the senior unsecured debt of Altice France following debt restructuring announcements, and Ardagh Packaging exploring its debt structure. These incidents follow the recent Intrum crisis, where debt collector bonds plummeted by 20 points amid restructuring talks. These developments have erased the year-to-date gains of CCC-rated bonds in Europe, which stood at +6% before last week's events. This serves as a stark reminder of how quickly circumstances can change, especially in today's volatile interest rate environment! Stay informed and vigilant in navigating the ever-changing landscape of high yield markets. #HighYield #CreditConcerns #MarketVolatility 📉
The Fed wants to loosen into what has already been the largest effective easing of financial conditions that we've seen from peak to trough...
equity markets, gold and digitalgold absolutely love it! Source: Markets & Mayhem
Turkey raises benchmark rate unexpectedly by 500bps to 50%.
But main rate still way below inflation of 67.1%. Source: Bloomberg, HolgerZ
If one ignores dividends gold has been able to keep up with equities since Nixon ended things in 1971.
Source: Michel A.Arouet, Bloomberg
BREAKING: Japan's core inflation accelerates to 2.8%, the first increase in 4 months.
Japan's core inflation has now been above the Bank of Japan's 2% target for 23 consecutive months. Source: Win Smart
Here are the Equally-weighted Nasdaq100 and S&P500.
If these two are above their former cycle highs, it's hard to be too bearish on this market. Source: J-C Parets
Crude Oil is approaching a Golden Cross formation with an upward sloping 200D moving average.
The last Golden Cross sent Crude Oil soaring to its highest price since August/September 2022. Source: Barchart
