Global investors escape U.S. debt market, as treasury yields hit a fresh high

Redemptions by global bond funds were the fifth-largest ever, last week, amid rising fears of higher interest rates and borrowing cost, Bank of America Merrill Lynch disclosed in a report based on EPFR Global fund flow data.

Fri, 02/16/2018 - 09:07

Dollar drops to a three-year minimum

The dollar fell to its lowest level since December 2014 against its major peers on February 15th, as investors drove money away from the U.S. back to Europe.

Fri, 02/16/2018 - 08:47

Laffer curve is still alive, JPMorgan says

The labor market is improving in all the most developed economies. In the United States, as in Germany and many other European countries, the unemployment rate is now close to the natural rate, which for the economic theory traditionally is around the 4% threshold.

Thu, 02/15/2018 - 09:34

US inflation unexpectedly rises more than expected

U.S. year-over-year CPI rose +2.1% in January, unchanged from the previous month, 0.2% higher than expected. The figure suprised analysts and traders and renewed concerns that the Federal Reserve could hike interest rates more quickly than expected, perhaps on next 21 March FOMC meeting, despite another set of data showed disappointing US retail sales.

Thu, 02/15/2018 - 09:19

UK surprise inflation forces BOE to accelerate rates hike

The U.K. consumer price index (CPI) remained unchanged at +3% in January, according to the Office for National Statistics, a surprising result which exceeded analysts’ forecasts who expected the rate would fall to +2.9% as the Sterling was beginning to recover against the dollar after the post-referendum collapse.

Wed, 02/14/2018 - 10:17

S&P 500 could collapse to 2,500 if 10-year treasury yield crosses 3.0%, Société Générale warns

The two equity market crashes of the last week created strong persuasion among traders about the correlation between sovereign bond sell-off and equity markets slumps.

Wed, 02/14/2018 - 09:46

Investors fear another inflation-driven bond-to-equity meltdown

Yields on 10-year US Treasuries fell to 2.837% as of 2:39:57 AM EST on Feburary 13, after having approached 2.9%, as investors fear that another sell-off in bond markets could spread a contagion to equity.

Tue, 02/13/2018 - 09:37

Bridgewater bets short again against Europe

Bridgewater, the world’s biggest hedge fund run by its founder Ray Dalio, has recently bet more than $14B on a next equity decline in Europe, with the biggest short position of $1B taken against German engineering firm Siemens AG.

Tue, 02/13/2018 - 09:33

COT indicator says Hedge funds are exit long positions on EURUSD

Euro rose to 1.2278 (+0.21%) against the Dollar as of 2.42 am EST on February 12th, after the single currency had fallen last week after the release of the U.S. non farm payrolls. The increase in jobs was better-than-expected but more importantly the hourly wages came in higher, hinting the Fed can hike interest rates 3 or even 4 times this year.

Mon, 02/12/2018 - 09:48