We don’t often get blowouts like that but they do happen from time to time. Usually you don’t see it coming and it’s often just the market pressure valve blowing and releasing whatever pent up frustration it’s been sitting on.
Whatever it is this time bonds have been the one to throw its toys out of the pram. Usually it’s us FX mob that’s having a fit so it’s nice to see the shoe on the other foot.
Slowly but surely we’re still unwinding the moves with the pound and euro on their way back from whence they came. The pound is back down to 1.5940 and the euro 1.2760.
Lots of comments here and in cyberspace declaring the end of the civilized world as we know it but we’re just a couple of small steps away from that right now
The world hasn’t ended and the US hasn’t suddenly fallen into the dark ages. The Fed hasn’t suddenly imprisoned all the hawks and the sun will rise again tomorrow (hopefully
)
So as always we need to look at what has just happened and see what comes of it. If US yields start to slide down again and the dollar falls with it then we know we’re possibly seeing a big shift in the market. One big blowout doesn’t mean everything has changed. Watch the prices and let them be your guide but try to remove yourself form the hype and look at what has just happened with an open mind.
