"Twenty years of central bank and government-enabled debt-driven asset bubbles, have broken long-standing laws of financial and social equilibrium. A secular global repricing cycle is necessary to break the impasse and reboot the system. The status quo is unraveling, as it must."
Two-year Treasuries offer reasonable returns for the first time in a decade. Tied as they are to Federal Reserve policy, they will only stop rising once markets feel they have the central bank’s intentions fully baked into bond prices.
The rising popularity of passive investing will play a role in making it more likely that correlations between asset classes and sectors will behave differently in the next downturn than they have in the past.
The ECB's CSPP pace has fallen sharply over the last four weeks Is this a signal that a new CSPP regime has started in Q2, three months earlier than we expected? According to DB, "the ECB may well have decided to slow down corporate purchases in Q2 already in order to wean the market off the addictive effects of the CSPP."
What traders refer to as the “liquidity smile” formed by the pattern of trading volumes has recently become more pronounced and turned it into a “liquidity smirk” due to the lopsided importance of the 3.30-4pm trading window.
Following the arrest (and imprisonment on treason charges over a contract dispute with PDVSA) of two of its workers, Reuters reports, citing four people familiar, that Chevron has evacuated executives from Venezuela.
Reuters reports that The New York Stock Exchange says trading suspended in Amazon (AMZN), Booking Holdings (BKNG), Alphabet (GOOGL) and Zion Oil & Gas (ZNWAA) for the rest of the trading day due to a "price scale code issue."