Yesterday I referenced an UBS report about the lack of liquidity in the bond market under the guise of “it is not what you say but rather why you say it” specifically stating the lack of liquidity is perhaps impacting overall profitability. On Wednesday, UBS announced...
Treasury prices have been surging. Yields are now around 90 basis points (0.90%) lower than they were about three months ago. In other words, yields have dropped over 33% with the large minority of this decline occurring since the March Fed meeting, the meeting...
We are we going? Three months ago the global consensus view was growth. Three months later, the inverse. According to Bloomberg, since November the global universe of negative yielding debt has surged by 75% to approximately $10 trillion. The apex was ...
The “official” yield curve inverted Friday, defined as the 90 day Treasury yielding more than the 10 year Treasury. This is the first inversion since 2007. The catalyst for this inversion was the Fed’s surprisingly dovish turn amplified by ...
Equities were mixed yesterday as the NASDAQ led by the technologies advanced and the Dow fell. Equity volume was muted. Treasury yields were relatively lower and oil rose after Saudi Arabia announced even deeper cuts and Venezuela is...
Led by financial and healthcare, equity markets declined the most in a month. Throughout the day many were asking what the possible catalyst is for the decline given positive movement on trade. Some speculated it was the inability of the S & P...
Friday a Bloomberg headline read One of Wall Street’s Most Poplar Trading Strategies is Failing, referencing the implosion of risk based parity models and Commodity Trading Advisors (CTAs) which have grown ...
Treasury yields fell to a five week low yesterday. Two weeks ago the street was “puking bonds,” reasonable bids virtually impossible to find and spreads between the bid and ask were gapping higher. In my view the economic environment is continuing to improve thus casting...
Fitch reported yesterday losses in the sovereign debt market would globally approach $3.8 trillion if yields rose to 2011 levels. The 10-year reached a 3.74% yield on February 8, 2011 and then plummeted to a 1.71% yield by September....
I think most would agree the last 45 days the unexpected has occurred. The most unloved stocks are outperforming the most loved stocks (aka mega capitalized momentum growth issues) in the greatest equity reversal since 1933, the dollar falling to a 17 month against the...