doc_PhilipMcMaster_RepublicOfConscience4487

zerohedge.com / by Tyler Durden / Apr 11, 2017 1:35 PM

Despite the panicky “reverse engines!” dynamic last Friday in the US rates market – with popular “reflation” trade expressions (which had been seeing vicious unwinds) suddenly breathing new life as Fed’s Dudley clarified his “misconstrued” comments on “little pause” with short-term rates hiking –  RBC’s head of cros asset strategy Charlie McElligott points out that 5y5y inflation remains stuck, EDZ7/8 curve is flattening again, and the EDZ789 butterfly too is again fading.

Nominal UST yields continue to be gravitationally ‘held’ around this low 2.30s level, ahead of today’s 10Y sale later…

SUMMARY:

• Last Friday’s ‘rates reversals’ post Dudley “clarification” not driving “reflation” follow-through across-assets.
• Still strong / expansive data (although signs of mean-reversion with regards to fewer ‘beats’ / more ‘misses’) proving unable to break the rates ‘range trade.’
• Fiscal / tax policy sentiment trending ‘worse,’ supporting UST ‘bid’ in conjunction with geopolitics.
• Crude the lone “reflation” stand-out but unable to single-handedly lift risk-assets higher against this backdrop.
• Key proxies going-forward: $/Y ‘breaking lower’ again will be a key ‘leading indicator’ with regards to risk-appetite, especially with regards to Asian sentiment and its impact on US rates–while 5Y breakevens are indicating lack of ‘belief’ in US inflation ‘stickiness.’  Both led S&P ahead ahead of its August / September ‘fade’ last year as well.

READ MORE

The post As Stocks Sink, This Is What RBC Is Looking For appeared first on Silver For The People.

bitcoin looking for $2650 around June 1st EN English (UK) EN English (IN) DE Deutsch FR Français ES Español IT Italiano PL Polski SV Svenska TR Türkçe RU Русский PT Português ID Bahasa Indonesia MS […]

15% of Metropolitan Bank’s Deposits are Owned by Cryptocurrency Investors Advertisement Metropolitan Bank, a commercial bank based in New York, has revealed that more than 15 percent of the bank’s deposits are made by cryptocurrency […]