kingworldnews.com / October 26, 2016
Here is a look at Jeff Gundlach’s warning and danger for key global markets.
Here is a portion of what Peter Boockvar wrote today as the world awaits the next round of monetary madness: Yes, markets globally are trading lower after the Apple numbers but we are also seeing another rise in interest rates, especially in Europe. It’s another day of both bonds and stocks trading lower which makes perfect sense as its contra to the last 7 years where bonds and stocks rallied together (and the same trend from 1981 to 2000)…
We can continue to analyze earnings and the economic fundamentals every which way to try to figure out where stocks go but let’s be honest, it’s all about where rates go in the monetary world we live in. The German 10 yr bund is up 5 bps to .08% which would be a closing 4 month high. The 10 yr Gilt yield is breaking out by 6 bps to 1.15%, the highest since the day of the UK vote. The French 10 yr yield is up by 5 bps and the Italian 10 yr yield is higher by 6 bps to also a 4 month high. I can’t blame bond weakness in Asia as yields there were little changed. The US 10 yr is getting dragged up to 1.77-1.78%, testing yesterday’s intraday high. The US 2 yr yield is up by 1.5 bps to .87%, the highest since early June on the heels of the weak 2 yr note auction yesterday.
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