Submitted by Peter Tchir of Academy Securities
Another week with so many competing narratives driving markets. The information flow was coming so fast and furious that it is difficult to believe that Economic D-Day kicked off the week (it already seems longer than that).
Today, we will take a quick romp through how things seem to be playing out.
Opportunities Lost?
As anyone reading recent T-Reports knows, I was hopeful Warsh would take the stage on Friday and try to “shake things up.” Try to drive home some new (and in my view, much needed) paradigms. We got to discuss this ahead of Warsh’s speech on Friday morning on Bloomberg TV.
Warsh does deserve some credit for using the word “hike” three times at the start of his speech (but all in reference to the activity involving walking outdoors, rather than anything to do with rates). Not sure it was wise, as it likely set the algos off on the 2-year note, but I do applaud the effort to mislead the algos and speed readers.
In the end, bonds bear flattened. Stocks fell a little bit, but the bear flattening was the big takeaway from what I found was quite a boring speech, that really didn’t provide any new information.
The 30-year bond rallied initially and tried to hold on to those gains, but finished the day with higher yields. Part of that afternoon selling on longer-dated Treasuries could well be he
