10Y iron

Iron Ore ‘Boom’ Fails To ‘Enhance The High’ For Dead-Sober Bond Yields

In other words: bonds ain't buyin' it.

So if you weren't paying attention on Sunday evening, you missed a rather remarkable move higher in iron ore catalyzed by this truly hilarious tidbit from China's official PMI data (which missed on the headline prints, but folks found a sub-index to cheer): Construction industry boom to enhance the high. With the continued investment in key areas, infrastructure investment continued to run high, this year the construction industry to maintain rapid growth in production, this month’s business activity index was 62.5% , up 1.1 percentage points from the previous month , the highest point in recent years. Yes, the business activity index "boom[ed]" to 62.5 and that should "enhance the high." Again, it certainly did "enhance" iron ore, which "boomed" to a four-month "high": So you'd think that would be stoking some bets on "reflation," or at least on the odds that policymakers have more room to tighten thanks to upbeat construction data from the engine of global growth, global trade, and importantly, global credit creation. Well, you'd be wrong. Or at least if you're using Treasurys as a measure of reflation optimism. "The iron ore rally that has affirmed optimism ove
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