Stocks & Bonds Tumble As Rate-Hike Odds Rise

The Ultimate Managed Hosting Platform
Fight Censorship, Share This Post!

Stocks & Bonds Tumble As Rate-Hike Odds Rise

Higher than expected labor costs and the corresponding tumble in productivity prompted  combination of recession fears and inflation anxiety with the market pricing in more tightening in the short-term and then more easing after the recession hits…

Source: Bloomberg

Notably the Q1 rate-cut expectations are fading, notably almost back to zero probability of the cut…

Source: Bloomberg

Stocks did not like that and long-duration Nasdaq stocks sank notably with Small Caps worst on the day. The Dow was the least ugly horse

Treasuries were all sold today, reversing Monday’s gains with both 10Y and 30Y remaining lower in yield on the week. Today saw the short-end underperform (2Y +7bps, 30Y +2bps)…

Source: Bloomberg

Notably all yields are still higher from Friday’s payrolls print.

The yield curve flattened significantly with 2s10s trading as inverted as -49bps….

Source: Bloomberg

The dollar ended unchanged after some early weakness (testing down to pre-payrolls levels) was reversed…

Source: Bloomberg

Crypto slipped lower on the day with bitcoin testing down to $23k…

Source: Bloomberg

Gold pushed back above $1800 today…

Oil ended very marginally lower after testing above $92…

Finally, US retail pump prices fell to 5 month lows…

Source: Bloomberg

And while President Biden’s approval rating has bounced, it remains notably divergent from gas prices.

Tyler Durden
Tue, 08/09/2022 – 16:00


This post has been republished with implied permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.


Fight Censorship, Share This Post!

-> Click Here to Read the Original Article <-

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.