DXY and euro were both firm last night:
Commodity currencies generally rebounded:
Oil too:
And base metals:
Plus big miners:
EM stocks are ripping. I hate this rally but with guys like Gundlach behind it it may run purely on the valuation play:
High yield is stalled:
US bonds were sold and the curve flattened:
European too:
DM stocks rose a little:
Despite the selling in the US, Australian bonds were bid and the yield spread is tumbling again at new seventeen year lows for the two year of just 34bps:
I still think that the spread may invert negative before year end. The curve is not pricing any of the forthcoming weakness in Australia and remains stupidly steep:
And although I reckon oil will slow the Fed, it’ll still hike at least once more.
Lot’s of implied pressure on the Aussie dollar here.
