Shit was about to hit the fan and Central Banks needed to act, and they did.
There are some levels on different charts that all at same time were signalling stress in markets, and the most blatant ones that currently make more noise IMO are the 10yrs US interests yeald, and the USD/JPY rate.
When the 10yrs goes near 4.45% range you can almost bet that Trump and or the FED will do everything they can to lower it down. With a Teump tweet saying Strait is open again (lol) or the FED opening Swap Lines for other Central Banks in stress because of oil price and their currency falling. And you can tell looking at Japanese Yen that can't go over 160, and if does JCB will sell everything to avoid it, and US govt will try to avoid having Japan to sell US treasury or Assets.. sooo Swap Line opened to convert Foreign currencies with Dollars to increase liquidity and trying to stabilise markets.
Check what they did yesterday..
DXY ofc corrected too at same time going from almost 100 to 98 in some hrs and also € strengthened with 1% raise at same time.
So what is US purpose? IMO keeping lower interest rates as they have to refinancenad reroll 10T debt in the next months with lowest yealds thwy can, while inflation going up, basically destroying purchasing power of Treasury owners in the long time.. someone has to pay the debt, and is never the government.
Some is spotting this and that's why Investors looks for higher yealds pushing it up forcing the FED to act.. those months as we go to mid election and new FED chair while all markets, economic balances and supply routes changing, will be interesting to watch developing.
They'll print, and things like bitcoin are spotting it first.. IMHO.
#Economy #markets #finance #macro #geopolitc #currency #yeald
