Yesterday, Ashraf shared with WhatsApp Broadcast Group Members ways to ride the latest risk-on ascent using bond yields | The recovery in bond yields off their 100-WMA raises as many questions as it answered on Tuesday |
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Surging geopolitical tensions between the US and China slowed the USD rally see Ashraf's tweet below | US existing home sales and initial jobless claims are due up next along with the ECB |
Moments ago, the bank renewed its committment to persistently accommodative monetary policy and reinvest maturing bonds from the PEPP program int end of 2023.
Flows continued to bleed out of equities, seeking refuge in bonds, driving down the US 10 yr yield under 1 | JPY is down across the board, while JPY is only higher vs JPY as CAD and NZD are the strongest currencies of the day |
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The major indexes showed losses of more than 2 percent, including the Dow Jones industrial average, which shed about 250 points and dropped to its lowest level in more than a year | Last month, the ECB fumbled its mandate review and is ensuring it steers market expectations this time round |
The below chart shows familiar technical paramters, with yields remaining above their confluence support of 100-DMA and multi-month trend-line, while SPX touched and bounced off its 55-DMA for the 3rd time in two months | |
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