10Y yields are back below 2.50% and the entire Treasury complex is flattening (erasing post-GDP losses) as fears over Catalan independence and Hong Kong protests spark safe-haven buying around the world. Gold is up, back over $1220 (pre-GDP levels) and Bunds are well bid yet the USD is fading modestly this morning driven by EUR and JPY strength. European periperhals bond risk is on the rise and stocks are mostly lower with Germany's DAX back below its crucial 50DMA. US equity futures are all red - retracing the entire Friday mini-melt-up in the afternoon (and catching back down to credit reality).
US equity futures have erased the late Freiday meltup gains and are back at pre-GDP levels...
[8]
They tried their best to rally stocks with some USDJPY momo...
[9]
Treasuries have erased post-GDP losses and 10Y is back under 2.50%
[10]
USD is losing steam this morning...
[11]
Gold has broken back above pre-GDP levels...
[12]
European stocks are weak, as the DAX drops below its 50DMA and into the red year-to-date...
[13]
Charts: Bloomberg
* * *
As FTN noted, Financial markets are becoming more sensitive to their own price reactions and leaving fundamentals to the side
Trading isn’t thin, but it remains confused across the key markets.
Only currency moves have clear explanations on most days, while stocks and bonds produce the answer ‘because’ to the daily question of why did they go up or down”
