{"id":47096,"date":"2019-07-06T07:20:12","date_gmt":"2019-07-06T12:20:12","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47096"},"modified":"2019-07-06T07:20:19","modified_gmt":"2019-07-06T12:20:19","slug":"weekly-commentary-abject-monetary-disorder","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47096","title":{"rendered":"Weekly Commentary: Abject Monetary Disorder"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/07\/weekly-commentary-abject-monetary.html\">Weekly Commentary: Abject Monetary Disorder<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A market week that began with a U.S.\/China trade \u201ctruce\u201d ended with much stronger-than-expected (224k) June non-farm payrolls data. There were new intraweek record highs in equities and no let up in the global yield collapse. Lacking was increased clarity as to prospects for trade negotiations, economic growth and central bank policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Almost a week after Presidents Trump and Xi agreed to restart trade negotiations, there are few details as to what was actually discussed and agreed upon. The ratcheting down of tensions was widely expected in the markets. As anticipated, President Trump chose not to impose additional tariffs on Chinese imports. The softening of sanctions (allowing purchases from U.S. suppliers) on Huawei was the major surprise, although even on this point there is murkiness. After push back from U.S. security \u201chawks,\u201d the administration stated the Chinese tech powerhouse remained blacklisted and had not been granted \u201cgeneral immunity.\u201d Little wonder there was no mention of the Huawei concession from Chinese state media, only warnings of the U.S. propensity for \u201cflip-flops.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Analysts have generally responded cautiously to the \u201ctruce\u201d and to prospects for an imminent trade deal. Equities, in the throes of speculative impulses and record highs, celebrated the reduced odds of near-term negative trade surprises during at least a temporary cooling off a vitriol.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Global bond markets, enjoying their own speculative melee and attendant unprecedented low yields, were fazed neither by either the \u201ctruce\u201d nor surging risk markets. German 10-year bund yields were down eight bps at Thursday\u2019s lows, to a record negative 0.41%. French yields were down 13 bps for the week at Thursday\u2019s record low negative 0.14%, with Swiss yields down another 12 bps to Thursday\u2019s record low negative 0.67%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: Abject Monetary Disorder A market week that began with a U.S.\/China trade \u201ctruce\u201d ended with much stronger-than-expected (224k) June non-farm payrolls data. There were new intraweek record highs in equities and no let up in the global yield collapse. Lacking was increased clarity as to prospects for trade negotiations, economic growth and central [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7756,16861,26214,534,3222],"class_list":["post-47096","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit-bubble-bulletin","tag-doug-noland","tag-global-bond-yields","tag-monetary-policy","tag-trade-war"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47096"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47096\/revisions"}],"predecessor-version":[{"id":47097,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47096\/revisions\/47097"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}