Nasdaq leads the way

Nasdaq leads the way

Microsoft earnings are the main reason that the Nasdaq is up 0.7% today but don't ignore the correlation between bonds and tech.

More than ever, the sector trades like a long-duration asset. I believe there's a case for re-thinking that relationship but right now it's strong. The new highs in tech stocks come after a sizzling 5-year Treasury auction.

I tend to think there's a short squeeze in bonds underway today after the plunge in UK gilt yields and now 10 bps decline in US 10s and 30s but we'll have to wait for the dust to settle around month-end.