US equity futures are lurching ever higher into the cash market open, because – reportedly – “optimism over US-China trade talks.” The only problem is – the yield curve (and rates) are collapsing…
One could argue that the machines are just running stops…
Because the bond market ain’t buying it at all…
Source: Bloomberg
This is the most inverted the curve have been since Lehman…
Source: Bloomberg
A week book-ended by long-weekends (UK and US) has done wonders for the machines running the stock market; but they just can’t control the bond market yet.
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