Bond market update: momentum, drawdowns in context, corporate bonds, long-term rates expectations, intermarket indicators, macro, search for yield, and the cure for higher yields...
The Bonds Chartstorm is really helpful as the bonds market is experiencing the biggest pivot in market regime since 40 years. Unfortunately many charts make the fundamental mistake of comparing different regimes of falling and now rising yields. To better understand this market, anchoring has to be overcome and comparisons starting in the 40ies and 50ies are needed.
According to Powell, we can and we will withstand higher rates. He’s made it clear he won’t hesitate to hike rates until the economy slows down enough to keep inflation at 2%. However, I’m not sure we’re in for a soft landing.
The Bonds Chartstorm is really helpful as the bonds market is experiencing the biggest pivot in market regime since 40 years. Unfortunately many charts make the fundamental mistake of comparing different regimes of falling and now rising yields. To better understand this market, anchoring has to be overcome and comparisons starting in the 40ies and 50ies are needed.
According to Powell, we can and we will withstand higher rates. He’s made it clear he won’t hesitate to hike rates until the economy slows down enough to keep inflation at 2%. However, I’m not sure we’re in for a soft landing.