From this morning’s “MarketWatch”, headline article:
Quoted in the article is Charlie McElligott, identified as a “cross-asset” strategist at Nomura Asset Management:
“Bonds are in the midst of a rolling ‘crucible moment’”, which is referred to as a “notable turning point in the history of a company or market.”
What’s the big deal?
- Next week we have auctions for seven-, five- and 2-year treasury notes.
- Then the Treasury Department’s quarterly refunding announcement that will guess at the total size of the Treasury’s funding needs for the 4th quarter.
- On top of all these, a flurry of inflation and labor market readings on top of 3rd quarter GDP growth.
- And (of course) let’s not forget about the Presidential election.
And we wonder why the stock market remains in a volatility vortex! All the factors listed above have a big impact on our bond markets, which almost certainly is impacting our equity markets.
As noted above, Charlie McElligott could very well be correct. We’re waiting to see what the market thinks about the outcome of the election.
The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.