Morning 8-14

All about the Curve(s)

  • In the U.S., 2-10s inverted for the first time since 2008 in the UK 2s10 also gone negative. Recession signs flashing, Fed behind the curve blah blah
  • U.S. 30 year yields touched an all-time low this morning, traders now gunning for the 2% handle, the lows today 2.0139%. Bund yields -.62%
  • The cause for the latest round of worries are weak Chinese Industrial production(17 year low) and retail sales, negative German GDP even though it was in line with expectations the negative print raised some concerns.
  • Wilbur ross just on wire saying no date set for US-China Trade talks in September  and that reason tariffs were delayed was due to Christmas shopping and not  an easing of tensions
  • Macy Earnings just terrible  lowered guidance

Spoos -41 handles, Dax -2%,Italy’s Mib -2.3%, UK FTSE -1.3%Cl -3.5%, Brent -3%, Copper -1.3% Gold +.8% Ultras  at one Point +4 handles. Yen on the bid +70 ticks in the future after dropping some 100+ ticks yesterdays on china optimism. The yuan was fixed above 7 handle one again Soybeans down a  bit corn steady, cattle  after being locked limit down for 2 days looks to bounce today as morning call is for a steady open

Economic calendar light today.

Risk Off theme

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