Daily Credit Summary: June 10 - Credit Selling Into Strength?

Tyler Durden's picture

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johngaltfla's picture

Tyler-What's your take on the short end of the yield curve (1-3-6 month) all dropping sharply in yield over the last two weeks? It appears to me that there is no conviction behind the actions of any of these clowns in DC or Brussels nor a desire to gamble and lose again in the equity markets.

mcguire's picture

'credit selling into strength' certainly betrays incredulity in today's equity rally.  for how long though??  seems like the criteria for 'risk on' is two up days in a row... so if there is another market rally tomorrow, will the credit markets ease?  if so, two things follow... 1.  once again, i am forced to swallow the bitter reality that markets are not efficient, like they taught me in school (worse than finding out santa doesnt exist). 2. if i were a central banker, i would treat short term liquidity shocks with interventions into the equity markets rather than in credit markets... seem like it would be cheaper.