Has QE lost its effectiveness? Has the artificial 'sweetener' of Fed induced low rates lost its favor or are we beginning to see the acknowledgement that the 'sweetener' may have damaging long term side effects...
Or is the 'correction' occurring due to the market's belief that the great unwinding is ready to begin and prices will adjust to where their true present market valuation lies?
Chart Of The Day
Bloomberg
Treasuries continued to take it on the chin overnight as the 10-year yield rose above 2.25% for the first time in over a year. Selling pressures came as the Bank of Japan did not take further action overnight, as some had expected they would do. Instead, the BOJ left policy unchanged for now. The Yen strengthened over 1% against the Dollar, the Nikkei fell 1.5%, European stocks are down 2.0%, and S&P futures are down 1.0%. Yields on Spanish and Italian 10-year bonds are up 20+ bps in the last two days alone. As the world’s central banks begin to disappoint the markets by not increasing asset purchase programs, there will be (is currently underway) a correction in asset prices.
The Market Today ONLINE
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