$TBT
If you're wondering why the 20-year gilt sold off—er, dipped in yield today—despite a rather shocking CPI print that should have sent yields higher on fears of the Old Lady (or the Fed) keeping rates tighter for longer, the secret lies in the bond market's desperate craving for a proper correction in equities
Not just any dip, mind, but a sharp pullback specifically in AI, semiconductors, and heavy capital expenditure plays
These sectors are currently driving the whole show; any sign of wobbling there gets read straight away as a blinking warning light for a broader economic slowdown, which sends investors scrambling for the safety blanket of long-dated bonds
$MUB
By that logic, the market’s giving a polite nod and turning a blind eye to sticky inflation, betting instead on future monetary easing if big tech starts unravelling
Hence, demand for bonds shoots up and yields drop, even when the inflation figures are screaming the exact opposite. It just goes to show: right now, tech stock wobbles trump raw price pressures every single day of the week
$NVDA
#CPIWatch
If you're wondering why the 20-year gilt sold off—er, dipped in yield today—despite a rather shocking CPI print that should have sent yields higher on fears of the Old Lady (or the Fed) keeping rates tighter for longer, the secret lies in the bond market's desperate craving for a proper correction in equities
Not just any dip, mind, but a sharp pullback specifically in AI, semiconductors, and heavy capital expenditure plays
These sectors are currently driving the whole show; any sign of wobbling there gets read straight away as a blinking warning light for a broader economic slowdown, which sends investors scrambling for the safety blanket of long-dated bonds
$MUB
By that logic, the market’s giving a polite nod and turning a blind eye to sticky inflation, betting instead on future monetary easing if big tech starts unravelling
Hence, demand for bonds shoots up and yields drop, even when the inflation figures are screaming the exact opposite. It just goes to show: right now, tech stock wobbles trump raw price pressures every single day of the week
$NVDA
#CPIWatch