Hyperscaler yield curves
Source: Global_Macro
Bessent’s bond-market victory didn’t last long. US 30y yields are back at 5.27%, wiping out the gains from Treasury’s surprise buyback expansion.
And the selloff is global: UK 5.86%, Japan 4.18%, Germany 3.82%. Message from bond vigilantes: deficits + inflation > intervention. Source: HolgerZ, Bloomberg
GoPro just surged nearly 138% in five days—and action cameras are no longer the main story.
The company plans to merge with optical photonics specialist Starman Optical in a deal valued at approximately $285 million. GoPro shareholders are expected to receive around $1.14 per share in cash while retaining roughly 10% of the combined company. The strategic pivot is dramatic: From consumer cameras to AI data centers, defense, aerospace and government infrastructure. Why does it matter? AI data centers rely on optical transceivers to move enormous volumes of data between thousands of GPUs, servers and storage systems. As AI workloads scale, high-speed connectivity is becoming a critical bottleneck—and a major investment opportunity. Investors are now betting that this transaction could transform GoPro into an AI infrastructure play. The stock jumped 46% in one session and another 78% in premarket trading. A spectacular repricing—but the deal still requires shareholder and regulatory approval. Source: Milk Road AI
Is the dichotomy between the Nasdaq 100 Index (in green) and the Advance-Decline line (in white) something to be worried about?
Source: Bloomberg, RBC
Only 25% of large-cap managers are beating the S&P 500 this year.
Source. Bloomberg
Global sovereign bond yields (in aggregate) hit their highest since 2007
Source: zerohedge
A lost decade in bonds well under way
Source: Global_Macro
EVEN THE US TREASURY SECRETARY IS NOW WARNING ABOUT YEN CARRY UNWIND.
Scott Bessent said a disorderly, sharp decline in the yen could set off forced unwinds of major trading positions. He warned this could spread stress across global markets, not just Japan. The end result, he said, would be higher borrowing costs for US households and businesses. This warning comes in a letter responding to Senator Elizabeth Warren, who questioned the US and Japan's joint intervention to defend the yen last month. The yen is already weakening again, sliding back toward 160 per dollar. That is the same level that triggered the original intervention just weeks ago. Bessent also pointed to Argentina, saying the Treasury used the same emergency fund last year to stop a currency crisis there before it spread further. He says Acting early is cheaper than waiting for a full blown crisis. If the Treasury Secretary himself is this concerned about the fallout, the risk here is bigger than markets are currently pricing in. Source: Bull Theory
