Good morning! Rates markets are on the march in the last few days of the year and are you listening👂?
It whispers, "I'm less afraid of Omicron & more fearful of inflation."
Shorter end added 2bps pt to hike bets (3 total in 2022) & longer end less flat.
It whispers, "I'm less afraid of Omicron & more fearful of inflation."
Shorter end added 2bps pt to hike bets (3 total in 2022) & longer end less flat.
https://twitter.com/Trinhnomics/status/1475999099140796418
Let's look beyond US rates to Asian markets & that includes equities, forex, govies, and commodities.
What do you see here? Risk markets say:
a) Not afraid of Omicron (Mongolia is special as it's like super commodity driven) as even Thailand is up & it's very sensitive to Covid
What do you see here? Risk markets say:
a) Not afraid of Omicron (Mongolia is special as it's like super commodity driven) as even Thailand is up & it's very sensitive to Covid
b) The dollar is down versus Asian FX month to date despite of news on Omicron being ominous, which means markets are OK with taking some risks
c) Yields up ex China, Australia & Thailand (China easing & AU linked via commodity)
d) Have you seen commodities? Very up!!! 👇👇👇
c) Yields up ex China, Australia & Thailand (China easing & AU linked via commodity)
d) Have you seen commodities? Very up!!! 👇👇👇
So the question we have to ask about commodities (btw, I like commodities as they are the beginning of all supply chains given that they are the raw inputs needed to lubricate economic life) is the UPWARD move is due to pricing in of supply shocks or also including demand.
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