Bonds & Gold Bid As PMIs Send Rate-Hike Odds Plunging


This morning’s PMIs – full of recessionary indications, forward-looking pessimism, and deflationary signals – appear to have been the straw that broke the camel’s back of hawkish expectations. Rate-hike expectations have tumbled notably and subsequent rate-cuts are hovering at 75bps…

Source: Bloomberg

This ‘dovish’ shift has sent the 10Y yield tumbling back towards 3.00% – erasing all of the post-CPI spike…

Source: Bloomberg

Gold is also rallying once again….

Stocks remain confused as to whether they should selloff on recession fears or rally on the expectations of easing and QE down the line…

Is this what Powell wanted?



Source link