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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Pogeu Mahone who wrote (161425)8/19/2020 6:06:19 PM
From: TobagoJack  Respond to of 219492
 
On nnoooooooo

Very inconvenient timing, i observe

On it



To: Pogeu Mahone who wrote (161425)8/19/2020 8:11:10 PM
From: TobagoJack  Read Replies (1) | Respond to of 219492
 
Am going to guess the Fed shall definitely go for yield-curve control given that the same Fed denies that it shall do so ..., a guess

zerohedge.com

Stocks, Bonds, & Bullion Tumble As USD Jumps After Fed Minutes Shun Yield Curve Control

It's hard to argue the Minutes were hawkish but perhaps it was the shying away from Yield Curve Control and fears over financial stability risks that spooked traders (for now). The push back on YCC raises the risk of a rise in nominal yields and it appears stocks don't like that... with S&P back in the red...



The lack of YCC means, as one wise old market veteran somewhat ironically noted that bonds sell on the higher degree of freedom... which sparks stock selling... which sparks bond buying... and 'stabilizes' bond yields?!

Bonds were dumped on the lack of YCC...



Source: Bloomberg

As the yield curve steepens...



Source: Bloomberg

The USD spiked...



Source: Bloomberg

And gold dropped (less easing?)...



As real-yields rise...



Source: Bloomberg

Of course, this could all change dramatically within the next 90 minutes.

Sent from my iPad