Bond

China Says "Don't Panic" As Yield Curve Inversion Deepens Amid Liquidity Collapse

The curious case of the inverted yield curve in China's $1.7 trillion bond market is worsening as an odd combination of seasonally tight funding conditions and economic pessimism create concerns among investors. However, on Sunday, the official Xinhua News Agency sought to stabilize markets expectations. “Don’t panic,” it urged investors.

A Record Number Of Market Participants Says The Market Is Overvalued, Surpassing 1999 Bubble Highs

The latest monthly Fund Managers (FMS) survey from Bank of America is out, and continuing the trend noted in previous months when the number of active managers who said that stocks are overvalued hit the highest in nearly two decades, the latest version reveals that the number of respondents saying that equities are overvalued has just hit a record high, surpassing the all time high set during the 1999 bubble.

Bill Gross: "All Markets Are Increasingly At Risk"

"You have the potential for low asset returns in which the now successful strategy of “making money with money” is seriously threatened. How soon this takes place is of course the investor’s dilemma, and the policymakers’ conundrum. But don’t be mesmerized by the blue skies created by central bank QE and near perpetually low interest rates. All markets are increasingly at risk."

One Trader's Advice To Bond Bears: "Come Up With Something New"

"U.S. Treasury bears haven’t come up with a compelling new argument in months, nor a reason why any of the old, stale logic will suddenly become valid now.... if current yields are supposedly unsustainable, then all the evidence points to the fact that they need to come lower if anything."

Global Markets Rebound As Tech Rout Ends; Sterling Rises

As the Fed begins its two-day meeting, global stocks have recovered their footing and European shares rise, led by a bounce in tech stocks as last Friday's global selloff that started in the sector shows signs of abating. Asian stocks and U.S. futures gain as investors turn their attention to today's Jeff Sessions testimony as well as tomorrow's barrage of macro data including Yellen, CPI and retail sales.

Citi Warns 'Inversion' Looms As Treasury Yield Curve Slumps To 8-Month Lows

Since The Fed began its 'tightening cycle' in December 2015, the Treasury yield curve (2s10s) has flattened dramatically, tumbling back today towards cycle lows (and well below Trump-election-hope lows). What is perhaps more worrisome is the historical trend strongly suggests this trend is far from over and an inverted yield curve looms.

RBC Is "Astounded" By The Magnitude Of This Rotation

This is "classic 'shorts outperforming your longs' stuff," notes RBC's head of cross-asset strategy Charlie McElligott, as he warns Friday's VaR-shock is a worst-case scenario against a backdrop where post-financial-crisis highs in 'net' and 'gross' exposures are currently deployed by the majority of equity hedge funds. However, he does offer a silver-lining for stock dip-buyers (and what to watch for).