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"Everything Is Not Awesome" - Don't Be The Turkey

"Things have not suddenly become awesome over the course of the past week... It is very easy to be sucked into the gushingly positive narratives and often unsupported narratives put forth by the financial media. This is particularly true when the move in asset prices can make minutes seem like days and hours seem like months. Excessive market valuations, weak internal measures, and a deteriorating backdrop has historically been a “wicked brew” for investor outcomes."

What "The Worst Bond Rout In 15 Years" Means For Stocks

"The paradigm has shifted in terms of inflation. Long-end interest rates are dangerous. Make sure you are being really careful about the long-end exposure as we saw this week." - Rick Rieder, CIO for global fixed income at BlackRock.

This Is What The Market Thinks Will Happen To The "Trump Repatriation" Cash

"Tobias Levkovich’s US share-shrinker portfolio has risen sharply relative to the S&P following the US election. Clearly, the market thinks that much of the capital repatriated from overseas will be returned to shareholders.  This doesn’t bode especially well for those who hope policy changes will encourage a significant pick-up in US company capex."

China Warns It Is Ready To Slow Yuan Plunge On Capital Outflow Fears

While Chinese policymakers have taken the yuan's recent slide in stride, they are getting ready to slow its descent - i.e., sell reserves -  for fear of fanning capital flight if the currency falls too quickly through the psychologically important 7-per-dollar level, Reuters reports citing policy advisers.

Euro In Historic Slide As Dollar Surge, Bond Rout Continues

More of the same this morning as the dollar extended its advance on the still undeteremined Trump reflationary policy measures after Yellen signaled an interest-rate hike could be imminent, while bond yields around the globe rose again, metals declined,  European stocks advanced and futures were modestly in the red just shy of all time highs.

BOJ "Fires Warning At Bond Market" Sending Global Yields, Dollar Lower; All Eyes On Yellen

Global bond yields and the dollar both weakened after the Bank of Japan offered to buy an unlimited amount of debt at fixed yields, stabilizing the global bond rout, while investors awaited testimony from Fed Chair Janet Yellen that will help shape the outlook for interest rates ahead of a December rate hike that is now seen as near certain.

Yen Tumbles After Kuroda Admits Lost Control Of JGB Market

We warned last night that the runaway yields on Japanese Government Bonds were a worrisome signal that the Bank of Japan had lost control (as short-dated yields rose above target and 10Y broke above policy 0.00% levels). Sure enough, it appears Kuroda hit the panic button tonight as it announced it first ficed-rate unlimited bond purchase operation.

Facebook Admits To Another "Glitch", More Overstated Ad Metrics

Less than two months after Facebook admitted it had overstated the influence of its product to advertisers, today the social network again reported that it had "discovered several mistakes" in its reporting of metrics to partners and advertisers. One of these mistakes could lead to pages seeing their 28-day reach drop by 55%, the company said.