Bond

US Stock Funds Suffer Biggest Outflow Since 2015 As Bond Inflows Soar

According to Bank of America in the latest week through April 5, there were $7.4BN in outflows from equities, the largest in 40 weeks. At the same time, bonds recorded $12.4 BN of inflows, the highest in 8 weeks, with Treasuries posting largest inflows in 10 weeks as the "great reflationary rotation" crumbled once again. The focus was entirely on the U.S., where stocks saw the largest outflow since 2015, or in the past 82 weeks, as $14.5 billion was redeemed.

Bonds & Bullion Bid, Stocks & Dollar Skid After Disappointing Jobs Data

10Y Treasury yields fell to a 2.26% handle - the lowest since Nov 18th and breaking the reflation-trade support - after a 4 sigma miss in payrolls this morning. Gold jerked higher once again - almost erasing the entire post-election loss, stocks and the dollar are under pressure.

RBC Explains Today's Rush To BTFD

"the missile strikes change NONE of the calculus for me...Thus, the balance of risk remains in favor of upside for now until this muscle memory above (buy risk dips, sell vol) is changed... The near-to-medium-term ‘risk downside’ story to me remains largely about the rates move as ‘reflation’ has broken trend line..."

US Futures Rebound Sharply, Erase All Syrian Airstrike Losses

After initially tumbling in the aftermath of the U.S. missile attack on Syria which jolted financial markets, boosting haven assets and temporarily shifting investor focus from today's jobs data , S&P futures have managed to recoup all losses (the Nikkei closed up 0.4% after sliding earlier in the session), with Europe also just fractionally lower and climbing fast.

The Next Step In Europe's Negative-Interest-Rate Experiment

"Paper money appears at first sight to be a great saving, or rather that it costs nothing; but it is the dearest money there is." This is the uncomfortable truth of the euro currency experience. As it seems, people in the euro area about to learn an old lesson: namely that unbacked paper money - which is what the euro represents - cannot be trusted.

Is The Fed's Balance Sheet Headed For The Crapper?

It’s no secret the plumbers at the Fed are feverishly devising a way to unwind their $4.5 trillion balance sheet with officials claiming this will nary elicit an inkling of a disturbance in the markets they’ve coddled all these years. But one must wonder, at the timing, at the ostensive optics, if nothing else...Unless, that is, the motivations of shrinkage are less than magnanimous and dare one say, immoral.

Gary Cohn Backs Reinstating Glass-Steagal, Breaking Up Big Banks

The former Goldman Sachs Group Inc. executive who is the top White House economic adviser told lawmakers he could support legislation breaking up the largest U.S. banks, according to people familiar with the matter, a development that bolsters congressional efforts to reinstate the Depression-era Glass-Steagall law.

What Happens When The Fed Warns The Market Is Overvalued

While investors hang on every dovish word bluffed from a venerable Fed speaker's mouth, the cognitive dissonance when something negative is uttered is stunning. Since Greenspan's "irrational exuberance" moment, asset-gatherers and commission-takers have advised ignoring Fedspeak on stocks... historically, that was a mistake for investors.