10 Year Bond

10 Year Bond

World Stocks Soar To New Record Highs As Oil, Metals Surge Ahead Of The Fed

US equity futures have hit a new all time high, helped by surging Asian and European stocks which have all started November on a euphoric note. Surging commodity prices, optimism about tax reform and hope for a new dovish Fed chair all combined to drive global stock markets to record highs on Wednesday.

"Dear Fed, Hike Slower... Shrink Faster..."

"Investors not being properly rewarded for the risk they are taking can have longer term repercussions... The normal process of price discovery has been changed, not just by the Fed’s activity in the market using its balance sheet, but also through the constant barrage of headlines designed to move markets."

Japan - It's Finally Happening

"I still shake my head at the stupidity. One of the most overindebted countries in the history of modern finance trading with a 0% thirty year bond... But this week the market decided to test the BoJ’s resolve... The market is finally saying the demand for credit is enough to force the Bank of Japan to buy bonds to keep rates down. And that was the signal I was waiting for. I am shorting JGBs with both fists."

Horseman Capital Asks "Is China Running Out Of Money"

"If Chinese foreign reserves continue to fall and the PBOC wants to maintain control of the exchange rate, they will need to face some difficult choices... Investors should be prepared for bigger falls in the Chinese Yuan."

Surging Bond Yields Signalling Pain Not Growth Ahead For US Economy

Government bond yields are surging not because growth will skyrocket in the US, but because they know that US debt under Trump will rise even faster than under Obama, reflecting the higher perceived risk of a potential default from considerably higher debt levels.

The World Has 6 Options To Avoid Japan's Fate, And According To HSBC, They Are All Very Depressing

"The escape options are a mixture of the ineffectual, the limited, the risky, the foolhardy or the excessively slow. As Japan’s recent experiments have demonstrated, upping the monetary dosage alone is not enough to cure the affliction. Indeed, to the extent that monetary stimulus only encourages a further wave of risk-taking within financial markets – often outside of the mainstream banking system - it may only perpetuate unstable deflationary stagnation."

SocGen Looks At The Devastation Across Markets, Sarcastically Concludes It Is "Time For A US Rate Hike"

"The solution to uncertainty is cheaper valuations. If problems are priced in, investors can afford to look through near terms concerns and focus on the longer term. Worryingly, we have exactly the opposite situation today. Average stock valuations are close to historical highs – so we have lots of risk and little in the way of valuation cushion.... Time for a US rate rise then?"

The Ghost Cities Finally Died: For China's Steel Industry "The Outlook Is The Worst Ever Amid Unprecedented Losses"

In late 2014 something happened: for whatever reason the most unregulated aspect of China's financial system, its shadow banks, not only stopped lending money but actually went into reverse, thus putting a lid on China's Total Social Financing expansion, which had been the world's "under the radar" growth dynamo for so many years. At that moment not only did China's ghost cities officially die, but it meant an imminent collapse for China's steel industry. That collapse has arrived.