DXY was flat last night:
AUD fell:
North Asia offered little:
Oil waltzed lower through OPEC:
Dirt meh:
Big miners are headed for big retest:
EM meh:
Junk still OK:
US yields were thumped:
Stocks got whacked:
I do wonder if the following chart is not about to revert to mean:
Sometime early this century, China began to influence DM bond yields lower. The recent COVID/Ukraine inflation shocks broke the influence.
But Chinese yields are sinking relentlessly as its broken economy slides inexorably into deflation. I do not think that temporary supply shocks are enough to prevent the return of Chinese influence on DM yields.
To wit:
Apple Inc.’s iPhone sales in China fell by a surprising 24% over the first six weeks of this year, according to independent research that may stoke fears about worsening demand for the marquee but aging device.
Falling yields and stocks are a rarity these days.
We may finally be about to get some cleanout of risk positioning.
