S&P: Keep a close eye on so-called momentum traders tomorrow as though we do not have a death cross..Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

Suddenly they know all about the US yield curve Which has been flattening since January 2014

Not only has the Treasury bond market been sending out warning signals for years, as always marching to its own tune and ignoring central bank directives, but interest rates all round the world have been on a secular downward trajectory for between 10 and 40 years – depending on the country. This week the yield on US 10-year TNotes is below that of 2-year paper, and it’s also at a new record low. This has been the case in some European countries for months. Stock market investors have suddenly woken up to this ‘anomaly’ with many indices today trading below their 200-day moving average; they had already closed below the 50-day one on Friday or earlier this summer. Assumption Day holidays in France, Italy and Spain today.

Swiss import and producer prices fell again in July, increasing their annualised decline from 1.4 per cent in June to 1.7 per cent last month. This explains in part why Swiss Conf bonds have such negative yields. Money tomorrow buys more than it does today – so why be recompensed via interest income?

Financial Markets and Political Commentary
 

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