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The bid within the entrance finish is unbelievable in the present day.
Maybe that is a rejection of worries about excessive inflation and additional bets on aggressive Fed fee cuts (Dec 2024 pricing as much as 151 bps).
One other concept is that bombs are about to begin falling within the Center East. There’s a report within the UK that Sunak is assembly together with his cupboard proper now to authorize a US/UK motion. I do not suppose that is actually going to be a giant deal however the rule of unintended penalties all the time applies in the case of warfare and there are individuals who would argue that the Houthis are extraordinarily battle-hardened.
The query is: If it is geopolitical threat, why are shares rallying? To that, I would argue that the fairness market is normally the final to know and is solely reacting to the bond market (or deciphering preventing as one more reason for the Fed to chop).
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