Overnight we saw a flush in precious metals, with no apparent catalyst, and now we are seeing US Treasuries extreme volatility as earlier strength extending gains from last week, are unceremoniously and suddenly dumped after Fed's Bullard warned markets that the probability of a September rate hike is now above 50%. Of course, thanks to meltups pre-market in FB, GOOG, and AAPL, stock indices don't care at all.
- *BULLARD: PRUDENT TO RAISE RATES OFF ZERO, GO MEETING-BY-MEETING
- *BULLARD: ECONOMY DOESN'T NEED EMERGENCY POLICY SETTING ANY MORE
- *BULLARD: GREECE, CHINESE STOCK MARKET MOVES WON'T HURT U.S.
- *BULLARD: ASSET PRICES NOT IN BUBBLE TERRITORY BUT IT'S A RISK
Suddenly Treasuries were dumped...
Though we suspect the kneejerk will retrace as hiking rates has been bullish for the long-end as of late.
Either way, we are sure that when rate hikes come, the market has it all priced in...