• Markets are a good old snoozefest this morning. And that rounds of a week in which bond yields were all over the place for no good reason. The US 10y Treasury yield had a nice roundtrip from a close on 1.30 last Friday to 1.13 on Tuesday and now back at 1.28 this morning.
  • In any case, bond yields haven’t really broken out to the downside just as like the sell-off earlier this year stalled. If there was method to the madness, we would say that there are two opposing forces at work: lingering virus worries and the notion that growth rates will slow at some point as fiscal and monetary policy stimulus (aka stimmie) is withdrawn; while in the near term the economy remains hot.
  • The down week for equities can’t even be called a down week. The Stoxx 50, Stoxx 600, S&P 500 and Nasdaq are just a smidgen below their ATHs. What’s a couple percent between friends? Asian stocks remain weak though as the Delta variant is disruptive over there for the simple reason that vaccinations are lagging.


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