Trouble. Paper markets are in free fall. The 12 month swap has broken both its low for the year, the move and $100. Dalian 6 month futures are chasing it lower. Rebar futures fell sharply to record lows.
Physical is following. Spot hit its low for the year and the move. Rebar average is fading fast. The Baltic Dy capesize component fell 4% as well.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.