Markets start sending some warning signals.
Wednesday saw markets close deep in the red with the SPX down 2% and COMPQX down 2.65%. More worryingly, the so-called “safe-haven” assets, namely US Treasuries, also showed weakness as yields finished higher all through the curve with emphasize put on the short-term bills. That is a rare outcome in the current risk-on-risk-off environment where a sell-off in equities translates in a strong bid for Treasuries, especially when the dollar index is up at the same time. We might just...
Read MoreAmerica’s Debt Hustle & Bustle
It’s been weeks now since weary investors and credit agencies have been meticulously scrutinizing the Eurozone and its roaming sovereign debt woes. Certainly, this comes as no surprise to anyone. Seeking refuge, investors have resorted to “safer” T’s across the Atlantic. Demand for 3 and 10 year notes rose, yields held low. However, one of the least risky borrowers believed to have an intermittent capacity to raise taxes and print money to guarantee its debts has also...
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