A Busy Stretch for Bond Market Participants

Fed Update Chairman Powell was before Congress this week and admitted several things: 1) rate hikes will not likely bring down cost of gas; 2) rate hikes will not likely bring down the cost of food (wheat, etc); and 3) a soft landing is unlikely, and growth is coming...

Aptus Musings: Fed Up With Inflation

Obviously, yesterday’s news regarding the market was all about the Fed. Just a few weeks ago, it seemed very unrealistic that the market would get a 75bp hike in June. Yet, due to Friday’s CPI report and a “mysterious” WSJ article on Monday, it created an environment...

The Market in Pictures, June 10

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and why:   1) JD: this stayed on the “anti-correlation” side for a few years but 2022 has kicked off another red/high correlation period   ...

Well, QT is Finally Upon Us

We are beginning a new regime as the Fed moves to reduce the size of its balance sheet which has grown to nearly $9 Trillion. Since March 2020, the Fed has made more than $4T in bond purchases. Now, to fight inflation, the Fed will begin to let some of their bonds...

A Generational Inflation Print, Until Next Month…

The U.S. CPI surged +0.8% m/m and 7.9% y/y in February. Core CPI, which is a measure that takes out food and energy, rose +0.5% m/m and 6.4% y/y in Feb. Given the recent geopolitical event since this February figure, specifically regarding the upward commodity...