{"id":1502138,"date":"2024-11-13T21:00:00","date_gmt":"2024-11-14T02:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1502138"},"modified":"2024-11-13T21:00:00","modified_gmt":"2024-11-14T02:00:00","slug":"bitcoin-big-tech-bond-yields-blow-out-after-cpi-resurgence","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bitcoin-big-tech-bond-yields-blow-out-after-cpi-resurgence\/1502138\/","title":{"rendered":"Bitcoin, Big-Tech, & Bond Yields Blow-Out After CPI Resurgence"},"content":{"rendered":"

Bitcoin, Big-Tech, & Bond Yields Blow-Out After CPI Resurgence<\/span><\/p>\n

\n

While this morning’s CPI all printed in line with expectations, it is clear that the narrative that “inflation is headed in the right direction” is on increasingly shaky grounds…<\/strong><\/p>\n

<\/a><\/strong><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Disinflation has stalled in the core goods sector…<\/strong><\/em><\/p>\n

<\/a><\/em><\/p>\n

\u201cOctober\u2019s CPI report contains no information that would discourage the FOMC from cutting rates again at the December meeting. <\/em><\/strong><\/p>\n

Still, we see risks that the key outstanding information for the Fed\u2019s preferred core PCE deflator – medical and financial services in the Producer Price Index, due Nov. 14 – may run hot in October. <\/em><\/p>\n

That could lead to fears that underlying inflation is stuck at a high-2% level, above the Fed\u2019s target.\u201d<\/em><\/strong><\/p>\n

That didn’t stop the algos going wild with kneejerk surges in the dollar, stock, and bond prices, as rate-cut expectations jumped…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The odds of a 25bps cut by The Fed in December jumped up to 70%…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

But, the day was still young…<\/p>\n

Stocks gave back all of their gains by the close…<\/strong><\/p>\n

<\/a><\/p>\n

Mega-Cap Tech managed strong gains off the opening weakness but ended the day only marginally higher (still holding on to the major gains post-election)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The ‘Trump Trade’ continues to surge higher…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

VIX was clubbed like a baby seal back to a 13 handle – a four-month low…<\/strong><\/p>\n

<\/a><\/p>\n

The Treasury curve massive steepened on the day as The Fed is now cornered with its rate-cutting cycle but the market knows where this ends (bullish lower rates for stocks in the short-term but long-end rates are the equalizer on any of that exuberance).<\/p>\n

On the day, the short-end was a major outperformer (2Y -7bps, 30Y +5bps), but all yields are higher from pre-election levels with the long-end notably so…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

…prompting a dramatic curve steepening that is screaming Fed policy error…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Bitcoin was the biggest winner with a massive surge to almost $93,500 before some late-day profit-taking…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

And while that is a record in USD terms, it remains slightly off record highs in gold terms…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

…despite gold’s decline today, which dragged the barbarous relic down near two-month lows…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

…not helped by the dollar’s incessant surge (to two-year highs)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Oil prices ended the day unchanged after a big dump and pump around CPI, with WTI holding above $68…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Finally, Goldman Sachs’ trader John Flood highlighted the 2016 analogs<\/strong><\/p>\n

<\/a><\/p>\n

Source: Goldman Sachs<\/em><\/p>\n

Similar trend for US Financials net flows (in 2016), <\/strong>as observed on GS’s Prime book (i.e., HFs)…<\/p>\n

<\/a><\/p>\n

Source: Goldman Sachs<\/em><\/p>\n

Regarding his 2016 experience, Flood warned it is hard to trade against the current momentum, but a lot of these red sweep trades peaked in early December…<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 11\/13\/2024 – 16:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/market-recaps\/bitcoin-big-tech-bond-yields-blow-out-after-cpi-resurgence<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin, Big-Tech, & Bond Yields Blow-Out After CPI Resurgence While this morning’s CPI all printed in line with expectations, it is clear that the narrative…<\/p>\n","protected":false},"author":0,"featured_media":1502139,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1502138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1502138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1502138"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1502138\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1502139"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1502138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1502138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1502138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}