Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Panic Returns To Markets As Fed Fears Crescendo
Risk sentiment was severely impaired Monday, when acute angst about the outlook for Fed policy manifested in steep losses for global equities and more front-end fireworks in rates.
After jumping 25bps in the wake of another scorching CPI report, two-year US yields staged an encore, rising sharply to the highest since 2007, briefly inverting the 2s10s in the process. Five-year yields rose more than 10bps, deepening the 5s30s re-inversion.
The optics for the Fed weren't great. Re-inversions (fig
The street is pushing the weak hands out of the market and will buy low. Vix was at 34 last I checked. If it gets to 40, you are looking at an entry point