Bond yields have dropped nearly 50bps in the last week all predicated on a Fed pivot due to the Gilt situation in the UK. Several (Brainard and Bowman) Fed officials have come directly out this week to address this situation and have said point blank….if you think we are going to stop with our rate hikes, your wrong….we will continue to hike until inflation is under control. But yet here we are again, the bond markets don't believe the Fed, they're still fighting the Fed. I for one am taking them at their word and am taking on some longer dated puts on QQQ for the inevitable realization markets will have. Pretty much all of the EU is still experiencing inflation growth as evidenced by inflation readings released today. Even the US had Core PCE growth (Feds preferred gauge on inflation). We have not reached a bottom yet, I think markets are still in denial, IMO of course.
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