From Spoos To Space: Goldman Traders Are Watching These Charts As Equity Continues To Outperform Credit

Markets spent the week trading the increasingly familiar 'bad news is good news' playbook, as cooler CPI/PPI prints and softer economic data pushed September Fed-hike odds lower, sending the S&P 500 and Nasdaq to fresh record highs even as the long end of the Treasury curve continued flashing warning signs, with the 30-year yield briefly pushing above 5.2% amid persistent fiscal and supply concerns.

The dollar softened as traders dialed back the Fed’s hawkish path, while bonds caught a temporary bid on the benign inflation prints before long-duration yields backed up again. Commodities remained hostage to geopolitics: oil stayed elevated and volatile around the Iran conflict and Persian Gulf disruption risk, while gold bounced Friday after a rougher week as real yields remained stubbornly high. Credit, meanwhile, continued to shrug at virtually everything, with financial conditions still loose and investors pouring another $9.4 billion into bond funds