Ironic timing in light of the recent yen bounce, pulling higher US bonds (and gold) with it - pushing US dollar and yields lower (putting a bid in equities). ;-)
when rate of change in yields picks up speed to downside, market thinks 'growth scare' but it is really a deflation scare that triggers the growth scare so concentration risk is UNWOUND.
but ONLY when rates fall south of the goldilocks zone... range-bounce and equites are fine.
my job is to know WHEN it's not fine anymore and warn clients.
Why do treasuries get supported? Aren’t they part of the yen carry trade?
treasuries, yen & oil are EACH carry trades.
when yields fall with oil, bonds and yen get bid
when rate of change in yields picks up speed to downside, market thinks 'growth scare' but it is really a deflation scare that triggers the growth scare so concentration risk is UNWOUND.
but ONLY when rates fall south of the goldilocks zone... range-bounce and equites are fine.
my job is to know WHEN it's not fine anymore and warn clients.