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.

Global Bonds Plunge As "Trumpflation" Rally Returns, Dollar Jumps

After taking a one day breather, the "Trumpflation Rally" returned with a vengeance as global government bonds tumbled and the dollar rose on renewed speculation the economic outlook is strong enough to allow the Federal Reserve to hike in December (odds are now 94%). Asian shares rose, industrial metals and crude oil fell, European shares and US equity futures were pressured.

Another Chinese Speculative Buying Frenzy In Commodities Collapses

Fool me once, shame on you; Fool me twice, I must be a Chinese commodity speculator. In a disastrous case of deja vu all over again, commodities from copper to iron ore and from rebar to coking coal have exploded higher in the past few weeks... just like they did in April/May of this year. And, as Reuters reports, just like we saw in May, the spike in volume relative to open interest has prompted exchanges to crackdown on the rampant speculation, increasing transaction fees and margins fuelling a "panic among investors," as they rush to sell.

RBC Market Commentary: "Under The Hood, It's Not Good"

"There is clearly a ‘factor crowding’ issue at play here (as there was at start of year) — whether it’s ‘style’ or previously mentioned ‘sector leans’ or ‘macro input’ — these market-neutral strategies are not supposed to see moves like this over multiple days (sorted by 5-day % return), let alone in a single day"

Copper Is The Most Overbought Ever

Following Friday's massive key reversal day - after a record 14 straight day higher - Copper prices are once again on the rise today, pushing the Relative-Strength-Index (RSI) to its most overbought ever (in 30 years)...

Markets In Turmoil: Global Bond Bloodbath, Currency Rout Accelerates As Stocks Erase Early Gains

Monday started off where Friday left off, with the dollar surge continuing, pushing the DXY above 100 for the first time since December, global bond yields soaring, emerging market currencies tumbling, and the Yuan slammed below 6.85 for the first time. However, where Monday is different is that while European stocks and US index futures started off far higher, E-minis have now faded the entire overnight rally and are now red for the session, on concerns that the spike in yields will cap any more stock upside.

Commodity Carnage: Copper Turns Red, Oil Plunges Near $42 Handle

Wednesday saw a bloodbath in global developed bonds. Yesterday saw Emerging Market currencies and bonds collapse. Today, it is the turn of the commodity complex as Copper erases a 7% gain intrday and crashes red, WTI Crude tumbles near a $42 handle (Trump lows) and precious metals are clubbed like baby seals...

Copper Is Having It's Best Week Ever As Chinese Speculators Run Amok (Again)

Copper has never, ever, risen at such a torid pace as this week. Blowing away any week's performance of the last 30 years, copper futures are up almost 20% as hopes for US President-Elect Trump's infrastructure spending extended its winning streak to an unprecedented 15 days in a row (up over 28%). There is just one problem - just like we saw in Iron ore over the summer, speculation (reportedly from Chinese traders) is running wild.