Yield Curve

US Financial Stocks Are Set For Their Greatest Monthly Gain Ever

Yesterday's short-lived correction in US bank stocks did nothing to tarnish the shocking exuberance of the month of November. With just 5 down days in the month (so far), US Financials added over $275 billion in market capitalization in November - the greatest gain in the index' history.

The Market's Next Headache: China's (Not So) Stealth Tightening

In recent weeks, China’s central bank has effectively tightened monetary conditions based on the shifting composition of its repo operations. As a result, the local bond market is getting increasingly nervous as selling - first of bonds, and then of equities - is expected to accelerate in response to what appears to be China's (not to) stealth tightening of financial conditions.

Deutsche Bank Warns "The Plate-Spinning Era" Is Over

"2016 has been a landmark year as we seem to have reached a point where the faster the plates are spun the more the unintended short-term consequences... the global financial system remains broken and extremely fragile. Secular stagnation trends are everywhere. The world has too big a debt burden for the current growth environment.."

'Grey Champion' Assumes Command, Part 2

Seventy year old Donald Trump has assumed the Grey Champion flagstaff. In an increasingly chaotic world, normal working class Americans in flyover country were seeking a leader who could bring order, defeat the corrupt establishment, make tough decisions, and capture the zeitgeist of this moment in history. The ruling elite oligarchs and their fawning minions are infuriated the peasants have dared to resist. In their secretive secure spaces, the elites are plotting with one purpose in mind – this uprising must be quelled.

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.

BofA Survey Reveals The Biggest Market Risk: A "Stagflationary Bond Crash"

According to BofA, the biggest tail risk is now a "stagflationary bond crash" - crowded longs (Minimum Volatility, US/EU credit, long EM debt) remain vulnerable to further jump in yields. In contrast, political rhetoric to calm “protectionism" fears (which jumped to highest levels since 2009) would boost risk appetite.

Why All Eyes Are Suddenly Back On The Bank Of Japan

"If the BoJ sticks to defending zero in a world where the US is likely to increase fiscal spending then you could make an argument that there is full blown helicopter money except that the BoJ is flying the copter over the US and may be about to become the new US government’s best friend."