An horrible 20-year JGB auction today tailed the most since 1987, showing that investors require a higher yield to buy JGB
Rising JGB yields threaten bonds worldwide, so we see EU and US sovereign yields accelerating their rise this morning. Source: Althea Spinozzi aka "The Bond girl"
A tricky time for US government bonds...
US Treasuries are facing multiple headwinds - economic strength (Atlanta Fed's real-time GDP growth forecast is tracking close to 4% for the third quarter), an uptick in energy prices and FED QT. But another headwind is fading demand stemming from historical buyers of US Treasuries: 1- China US Treasury holdings just hit a 14-year low at less than $850bn 2- Saudi Arabia’s stockpile of US Treasuries fell to the lowest level in more than six year (less than $100B) 3 - As Japanese long-term yields rose (due to a tweak in their #monetarypolicy), the largest foreign holders of US Treasuries, Japanese investors, became less interested in US bonds and asked for a premium. Source cartoon: GISreportonline
Quote of the day by Ben Graham
Source: JC Parets
Bitcoin approaching support 28’000
Bitcoin (XBTUSD) is approaching December 2022 uptrend support at 28’000. Keep an eye. Source : Bloomberg
Dassault Systemes at a very interesting level
Dassault Systemes (DSY FP) is back on a very interesting level. After May breakout and a 3 months consolidation (13% down since June high), stock is testing October uptrend support. Keep an eye at this zone 35.75-36.25. Source : Bloomberg
Gold breaking double support
Gold (XAU) is breaking June support 1907 and 200 days Moving Average at 1905. Next support levels are 1856 (minor) and 1807 (major). Source : Bloomberg
As highlighted by Caleb Franzen, the relative chart of SP500 / M2 money supply is trading at the exact same level as July 2007
This range also coincided with market peaks in: • Feb.'20 • Q4'21 While the S&P 500 itself has gained +181% in the past 16 years, $SPX/M2 has made no progress. Should this be seen as a logical resistance zone?
10-Year Treasury Yield is now 4.28%, the highest level since October 2007
From a total return perspective, the 10-Year Treasury Bond is now down 1% in 2023, on pace for its third consecutive negative year. With data going back to 1928, that's never happened before. Source: Charlie Bilello
