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2022 Rivals 2008 For Suddenly Wild Bond Market
"Keep those seatbelts fastened," TD's Priya Misra said, in a note documenting this year's fireworks in US Treasurys.
Over the past several weeks, market participants have witnessed daily swings in US rates the likes of which many of Wall Street's younger strategists, analysts and traders have never seen in their careers.
An already dramatic orchestra crescendoed this month, when the combination of a red-hot CPI report and a Wall Street Journal article tipping the Fed's intention to deliver the
H-Man, the 5 year belly inverted significantly, it does not bode well for equities. While the long end oscillates between 3.5 and 3.0 on the 10T, The push is higher with no road blocks until we reach 4.0 — then maybe some respite.
“So far, QT is working, Jim Bullard said Friday in Zurich. He conceded it’s too early to draw any conclusions, though. After all, it just started this month.”
Since June 1st, the Fed’s balance sheet has INCREASED for three straight weeks through June 22 (totaling ~$30 billion)