Risk Off

  Any Economic optimism priced via US treasury Curve steepner being unwound this morning as Risk Of back with an attitude. Powell did not sound optimistic about a Quick recovery from Virus, headlines from BBG are making people realize that the pandemic is not over “States including Florida, Arizona, Texas and California are seeing signs the pandemic is continuing to spread and “More than a dozen states are showing new highs in the number of covid-19 cases or hospitalizations”  and this one a bit scary from @ScottGottliebMD “The more concerning part is they haven’t been able to isolate what the source of the infection is.”  Green shoot turning Brown!

  Dow -3%,Nasdaq -1.6%,Stoxx and Dax -3%,Mib -3.5%,NKY -2.8%Cl -5% Brent -4% gasoline -4.6%.Dollar bouncing  as it should as it is the barometer of Risk on and off .30 year yields -5 bps  Gold Steady to higher  due to dollar strength. Bunds +100 ticks Yields -7 Bps All EZ 10 year yields down on day.  A bit of correction in the underlying short-term trend caused by Virus worries and less then Optimistic Powell

5 years are the new 2 years as fed has locked down Zero bound rates till at least 2022.More then one source discussing this

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

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