Why One Bank Isn’t Buying ‘Forced’ Bond Narrative

Why One Bank Isn’t Buying ‘Forced’ Bond Narrative

"We think that it is important to avoid the trap of forcibly fitting a narrative," Morgan Stanley's Guneet Dhingra said, in a Sunday note. Too late! Or, more apt: Ok, fine, but how are we supposed to make sense of markets if we can't forcibly fit a narrative to the price action? I'd say I'm just kidding. But I'm not. Our entire lives as market participants are spent fitting narratives. If we "avoid that trap," as Morgan's strategist sagely advised, then every financial journalist on the planet
Subscribe or log in to read the rest of this content.

4 thoughts on “Why One Bank Isn’t Buying ‘Forced’ Bond Narrative

  1. August seasonality for risky assets may or may not work. Yet, if it does work and say there is a 5-10% dip in equity prices, it would be hard to fathom a situation in which yields were higher–even if there was a spike in breakeven rates, it would seem the risk preference for safety would drive real yields even lower

  2. Good article. Price action is real. A good chart helps us see what the market is doing, not particularly what it will do. (IMO). The desire for narrative is understandable, but I try to leave that alone. Even when smart people get the macro scenario right, the path is unclear. And so i the timing. As for bonds 1 When will I get my money back? 2 Will I get my money back, and 3 How will I get my money back?

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.

NEWSROOM crewneck & prints