Loading ...This latest curve inversion, which signals that a European recession is looming, has spurred investors to buy riskier assets such as 30 Year Italian bonds, which yesterday saw their biggest one day gain since Draghi’s 2012 “whatever it takes” speech.
10-year German bund yields fell 8bps this week to a record-low minus 0.41%. Italian bonds have outpaced the bund rally to narrow the spread between the two to below 200 basis points Wednesday, the lowest since May 2018.
Meanwhile, confirming that Albert Edwards’ deflationary “ice age” is upon us, 10Y bonds from Belgium, France and the Netherlands have already joined the sub-zero club, which now amounts to a record $13.4 trillion in negative-yielding debt.
ADM Investor Services strategist Marc Ostwald warned that the huge stock of bonds yielding below zero might pose risks if the global economy shows signs of a rebound in the second half of the year: —
On the 6-month gold chart we can see the impressive breakout runup of recent days that has taken gold to a Flag target that it has reached in an extremely overbought state, which means it is entitled to take a rest here and that is what it is doing. Two other factors calling for immediate consolidation/reaction are the appearance of a short-term bearish shooting star candlestick on the chart yesterday, and the fact that it has run way ahead of its moving averages, which are now in strongly bullish alignment. We should not be surprised therefore to see it react back near-term, to perhaps $1380 or even $1370, which will have folks doubting that the gold breakout is genuine, but it is genuine, as made clear by the strong volume on the
The 3-year chart gives us useful perspective on the breakout, enabling us to see that it occurred from a fine Cup-and-Handle base that we had delineated quite a while back. This chart also makes clear how steep the recent rise has been and shows that it has become extremely overbought on its MACD, which means that it could do with a rest now. However, that said, THIS IS A MAJOR AND PROBABLY EPOCHAL BREAKOUT THAT IS OCCURRING HERE, SO GOLD IS PERFECTLY ENTITLED TO ACCELERATE AWAY TO THE UPSIDE, and is thus not expected to tarry for long. So any near-term weakness may be bought aggressively
Don’t know the last time I have seen it finish above a dollar. 1.08 to be exact.
Little 8 year old girl who does a parody of Congresswoman Alexandria Cortez has been forced to shut down her social media accounts due to death threats to her and her family.