Kolanovic: ‘Bad News Is Good News’ Zone May Be Quite Narrow

"The ‘bad news is good news’ zone may be quite narrow," JPMorgan analysts led by Marko Kolanovic said Monday. Last week's dramatic rally on Wall Street was facilitated by a sharp drop in long-end US yields. The bullish tone for bonds was set in motion by smaller-than-anticipated coupon increases in the refunding announcement, but softer macro data perpetuated the move, to the delight of an equity market that's beholden to rates. The problem with softer data is that, as Kolanovic put it Mon