US Stocks Surge Amid Record Highs, Inflation, and Rebalancing Risks  As stock markets continue to reach unprecedented highs, equities maintain their upward trajectory relative to bonds, growing increasingly expensive in comparison. This relentless climb in stock prices underscores a deepening divergence between the two asset classes. The near-...

Global Markets Weekly Wrap KW 37 : Global Markets Surge as Fed Cuts Rates for First Time in Four Years  U.S. MarketsU.S. stock markets surged to new highs this week following the Federal Reserve's rate cut. Investors welcomed what many believe will be an extended rate-cutting cycle. Large-cap indices, including the S&P 500 and Dow Jones In...

Stocks and Bonds React Differently to ISM, Payrolls, and CPI Data  Bond yields typically increase following major data releases such as payrolls, ISM, and CPI, but in recent years, they have shown a more pronounced rise after payroll reports. Stock movements, however, tend to be less influenced by these releases, except for the ISM data, which...

Macro Markets React to Fed's Cautious Stance: Stocks Waver, Bonds Reverse, Dollar Edges Up  Another uneventful day in the macroeconomic realm, although a concerning development emerged late in the day with a surprisingly weak increase in revolving credit, hinting at potential exhaustion among US consumers. Some remarks from Federal Reserve off...

Treasury Bond Auction Disaster Sparks Yield Surge, Sends Shockwaves Through Markets!  Despite hopeful predictions, particularly from Bloomberg's Markets Live blog, that today's 20-year bond auction would perform well, the Treasury's sale of these bonds produced disappointing results.  The yield of 4.595% exceeded last month's 4.423% and s...

"Who are the predominant forces in the bond market?" Despite common belief linking entities like the Fed or foreign Central Banks such as the Bank of Japan or the People's Bank of China to this role, the truth differs significantly. In reality, the true heavyweights in the bond market might rekindle their interest in bonds by 2024. Over 70% of net ...