Funtap
The thrills and spills of the new world order (such as it is or may be) continued this week, with some of the wildest swings in equity markets since 2008. As much as those gyrations in the Dow and the S&P 500
Don't Mess With The Bond Market
Summary
- As much as those gyrations in the Dow and the S&P 500 dominated the financial news shows, though, the real action was taking place in the bond market.
- What we saw this week in the bond market was a bit of vigilante-ism, giving a thumbs-down to the budding trade war, but also something potentially even more concerning.
- The last similar Treasury market disruption was in March 2020, but this time it was due to policy decisions, not an exogenous event.
- Plummeting stock prices hastened margin calls, leading financial players highly exposed to short-term market disruptions to unload Treasuries.
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