With trade war between the US and China set to begin at midnight on Friday, the market is taking on a oddly relaxed attitude, with S&P futures rising back to where they were before the waterfall drop just before Tuesday's close.
If the big story yesterday was the surge in 10Y TSY yields to just shy of 3.00% (2.996% to be precise), then it is only reasonable that the failure of the 10Y yield to rise above 3.00% overnight is today's "big story"...
While focus this week will undoubtedly fall on earnings with 181 S&P companies set to report Q1 results, there is also a busy economic calendar on deck with US Core PCE, real GDP, UK GDP, CPI and PMI across the euro area; and CPI inflation data in Australia.
"If the system falls, it will be the fall of a monster. When banks try to call in their huge fiat debts, it could cause an avalanche of repercussions. The elite will be safe, but the vast majority will be left in dire straits. "
Today's barrage of 13F releases showed that in the last quarter of 2017, many funds turned their back on some of the FAANG stocks, as managers like Duquesne, Coatue, Maverick and PointState trimmed their Facebook stakes while Point72 and Maverick Capital reduced their Google exposure.
"I was asked a fascinating question by Bloomberg Anchor Tom Keene: "if we’re facing a “bond rout”, what’s going to trigger it?" I see three threat vectors that could see the current gentle slippage in bonds become an avalanche..."