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
Forget US Treasuries, Chinese bonds are the new safe-haven trade
Since the start of the war, foreigners have: - Dumped $82B of Treasuries - Piled into panda bonds And this has nothing to do with China paying higher yields… - US 10-year yield: 4.4% - China 10-year yield: 1.8% In the midst of the biggest energy crisis, foreigners are choosing panda bonds over USTs. Source: Bloomberg, Lukas Ekwueme
Chinese government bonds have sidestepped a global debt sell-off since the start of the Iran war, emerging as a haven from soaring energy prices and rising global inflation.
Source: FT
Do NOT expect bond volatility (MOVE index) to go down as long as oil prices stay elevated...
Source: Bloomberg, RBC
European bond markets are having one of their worst months in a decade.
Italy's 10-yr yield hit 4.14% - highest since mid-2024. France's touched 3.9% - highest since 2009. Spain's at 3.7% - highest since 2023. The last time Eurozone borrowing costs moved this fast was in the 2022 energy crisis. The difference is that one cost €651 billion to contain. Source: FT, Nic @nicrypto
Fixed Income: Are markets starting to price in “growth fear” (instead of inflation fear”) ?
•A notable bid to bonds on Friday (decoupling from the correlation-one with oil and stocks) suggests inflation fears are ebbing, and attention is shifting to growth concerns. Monday market action gives the same message… •5Y5Y inflation swaps signal the ongoing decline in medium-term inflation... Source: Bloomberg, www.zerohedge.com
