Supply Shock Surprise Inflationary Wrecking Ball Hits Markets | Weekly Roundup
Apr 13, 2024
This week's episode discusses the surprise inflation hitting markets, rate cut expectations, and the impact on commodities. Topics include recent economic data releases, Federal Reserve's stance, geopolitical conflicts, Treasury market challenges, Japan's yield curve control shift, and global market volatility insights.
AI Snips
Chapters
Transcript
Episode notes
CPI vs. PPI and Market Impact
- CPI data came in hotter than expected, while PPI data was cooler, impacting the bond market and leading to a sell-off.
- This difference was significantly influenced by how car insurance is calculated within each index.
Declining Bond Demand
- The demand for long-end bonds has decreased, indicated by the tail in recent treasury auctions.
- A failed auction, where the Treasury can't sell its bonds, would signal a significant crisis.
Shifting Global Collateral
- JP Morgan's stock performance may signal a potential top, while Bitcoin's stability presents an alternative.
- Global collateral is shifting, with gold and Bitcoin potentially emerging as preferred stores of value.