Newsclips
A Synchronized Global Slowdown?
August 16, 2019
Why are U.S. yield plunging, the yield curve inverting and negative-yielding bonds increasing parabolically? World growth is not good.
Why are U.S. yield plunging, the yield curve inverting and negative-yielding bonds increasing parabolically? World growth is not good.
Japan's holdings of U.S. Treasuries surged in June, pushing them past China as the largest foreign holder for the first time since May 2017. China's forex reserves are also monitored for signs of retaliation on the trade war front.
Today's topics include a detailed review of the Camp Kotok gathering, political uncertainty and markets, an update on negative-yielding debt, why consumers seem unphased with the inverted curve, the political Fed and why currency wars are impossible to win.
Negative rates have hurt European banks. The fear is ECB head Draghi/Lagarde will cut rates even deeper into negative territory and put these banks into further stress.
No Feed official is scheduled to speak until Powell opens the Jackson Hole conference on August 22. His remarks will be closely followed as a sign of future policy.
Today's topics include stocks' wild day, S&P performance after a yield curve inversion, an update on negative-yielding debt, repo rates, Chinese capital outflows, tracking central bank activity, stock buybacks and VIX trading.
U.S. bond yields have posted one of their largest 10-day declines in the past 35 years. Previous such instances occurred during major stress points in the markets.
An inverted 2y/10y curve is not necessarily the immediate death knell for stocks.
A look at world GDP
Flows usually follow performance over longer periods of time. This has not been the case with financial ETFs in 2019.