To me, the fear in markets really goes back to last week’s data.
A big part of the market was looking for the data to snap back after a cold winter and it didn’t come last week. Jobs might take some time but the ISM non-manufacturing data would be quick to show improvements and the data wasn’t anything to get excited about.
Right now the market just isn’t enthusiastic. The bond market is a great spot to watch, especially the rate-sensitive front end.
US 5-year yields
The late-March low has broken and the market is pondering the possibility that rates will stay low and the US won’t recover.
Ultimately, the market is getting ahead of itself — a few good headlines on US growth and the bulls will be back in charge.
