U.S. TREASURY YIELDS ARE HITTING KEY LEVELS
While the S&P 500 just hit a fresh record high of 7,501, the bond market is pricing in higher interest rates for longer. The 30 year yield is at 5.085%. The 20 year is at 5.092%. The 10 year is at 4.538%. Every maturity is rising at the same time. Stocks are at all time highs because the AI boom is driving earnings and the market is pricing in years of continued growth. Bond yields do not care about AI. They care about a $2 trillion annual deficit, oil at $100, persistent inflation and a government borrowing more money every single day to fund a war. Can the equity markets bull run if bond yields keep rising? What's your take? Source: Bull Theory
Yields on 10y gilts have risen well above 5%, reaching their highest level since 2008 due to the UK government crisis.
Keir Starmer's premiership appears to be hanging by a thread after his much-anticipated policy reset speech on Monday - in response to the Labour Party's poor performance in recent local elections - failed to deliver the shift many MPs demanded. Starmer said on Tuesday that he wasn't going anywhere, but with calls for his departure mounting, he looks to be fighting a losing battle. Source: HolgerZ, Bloomberg
Japan's 20Y bond yield rises as high as 3.511%, highest since 1996 as global interest rates go vertical
With the long bond over 5% and the 10yr dancing around 4.50%, maybe it is worth to have a look at it again... Kantro had nice look back at the median weekly stock returns versus yields - see chart below. Source: Kantro, RBC
How does the sp500 perform when the US 10 year yield crosses key levels?
With the long bond over 5% and the 10yr dancing around 4.50%, maybe it is worth to have a look at it again... Kantro had nice look back at the median weekly stock returns versus yields - see chart below. Source: Kantro, RBC
The bond market’s inflation outlook just collapsed from over 5.3% to 3.0% over the next twelve months.
Source: Hedgeye, Bloomberg
There is a record $8.19 trillion in money market funds right now.
Source: KoyfinCharts
WTI crude hits session highs, pushing 10Y yields to dangerous territory: 4.35% any second
Source: zerohedge
US Treasury just did the largest Treasury buyback in HISTORY.
Treasury bought back $15,000,000,000 of its own debt to improve liquidity. Source: Bull Theory
