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The Cat’s Out Of The Bag.
"Traders [are] questioning the ability of even lower rates and their ability to alter consumer spending and corporate behavior", Nomura's Charlie McElligott wrote Monday morning, on a day when rates markets are on fire with speculation around another "save the world" moment for central banks.
Through the cash open on Wall Street, the market had heard from the BoJ, the BOE and the ECB. Expectations for rate cuts went Defcon 1.
But the issue is, it's just not clear that you can drown a virus in
No, you cannot fight a virus with rate cuts…. But lower rates and a deluge of liquidity will enable large profitable companies to continue to lever up to support buybacks, which greatly supports the oveall market (particularly since a few top companies make up such large % of the indices). I expect that the macro oracles will come around to see this soon enough.