Hartnett: Bonds Finally Bringing The Heat

“Smarter politically for Fed to hike next week, not wait until September, no?” - Zeitgeist quote from latest Michael Hartnett Flow Show

Two weeks ago we were delighted to see that none other than Goldman's top derivatives trader, Brian Garrett, echoed what we had been warning for nearly a year, namely that the real risk to AI stocks was not within the stock market at all, but rather with bonds, where spreads had been aggressively ramping wider in recent weeks as the market's concerns about return on hyperscaler investment once again spilled over into credit land in the process crushing semiconductor/memory stocks, amid fears the relentless capex tsunami would hit a brick wall and spark a market crash as hyperscaler capex has firmly cemented itself as the primary source of the global credit impulse.