Yields continue to climb, Bond prices continue to drop, whats happening next?

PawsAndProfits
09-26

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌

With yields continue to climb, no ease in political tensions between US and the rest of world, the consistant high prices of oil and diesel, the market seem to be resilent and still holding strong. Let’s see how long this bottleneck can hold before it breaks. We are heading into the “traditional” bear market period of the year. And with two more Fed announcements coming up, who knows which direction this market is going to swing?

@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]

PPI Surges 1.3% MoM — Can the U.S. Equity Rotation Hold?
QQQ slipped 0.13% while SPY gained 0.28% as hotter producer inflation pushed capital from AI-heavy tech into financials and consumer stocks. September PPI rose 1.3% month over month, more than double expectations, while energy lifted annual wholesale inflation to 6.3%. Bulls welcome broader market leadership; bears fear margin pressure and delayed rate cuts. Should investors favor SPY value sectors, hold QQQ, or wait for inflation expectations to reset?
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Comments

  • MyrnaNorth
    09-26
    MyrnaNorth
    The 2y10y spread matters more here than the headline yield move. If that keeps re-steepening on the long end, risk assets probably stop looking so chill
  • happyli
    09-26
    happyli
    Oil is only half the story. If Red Sea shipping gets worse, sticky inflation can push yields even higher and long bonds still look exposed
    • PawsAndProfits: 
      Yes agreed. With Trump rejecting the latest proposal from Iran on Sat, I do not see any near resolution for this conflict.
  • CHINNY168
    10-04
    CHINNY168

    Great article, would you like to share it?

  • CHINNY168
    10-04
    CHINNY168

    Great article, would you like to share it?

  • CHINNY168
    10-03
    CHINNY168

    Great article, would you like to share it?

  • CHINNY168
    10-02
    CHINNY168

    Great article, would you like to share it?

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