{"id":48443,"date":"2019-09-13T15:18:36","date_gmt":"2019-09-13T20:18:36","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48443"},"modified":"2019-09-13T15:18:38","modified_gmt":"2019-09-13T20:18:38","slug":"weekly-commentary-150-billion-global-corporate-bond-binge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48443","title":{"rendered":"Weekly Commentary: $150 Billion Global Corporate Bond Binge"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/09\/weekly-commentary-150-billion-global.html\">Weekly Commentary: $150 Billion Global Corporate Bond Binge<\/a><\/h3>\n\n\n\n<p>After an extraordinary August, markets are showing no inclination for stability to begin September. Jumping 1.3% Thursday on news of an October restart of trade talks, the S&amp;P500 gained 1.8% for the week. The S&amp;P500 ended the week less than 2% from all-time highs. The Semiconductors surged 4.2%, increasing 2019 gains to almost 36%. The Nasdaq100 advanced 2.1% (up 24.1% y-t-d), now also less than a couple percent from record highs. The Broker\/Dealers jumped 2.7%.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Not uncharacteristically, the more dramatic market trading dynamics were visible throughout fixed-income. Curiously, Thursday\u2019s bout of \u201crisk on\u201d (and much stronger-than-expected ADP and ISM Non-Manufacturing reports) finally captured the attention of safe haven bonds. Ten-year Treasury yields surged nine bps to 1.56% &#8211; which equated to a painful 1.8% one-day drop in the popular iShares Treasury Bond ETF (TLT). Intraday, TLT was down as much as 2.4%. Bullish pundits were quick to dismiss a single-session yield jump. But of the crowd piling into bond ETFs, how many are unaware of how quickly money can be lost in \u201csafe\u201d bonds?<\/p>\n\n\n\n<p>\u201cBiggest Bond Rout in Years Whiplashes Bulls Who Were Right,\u201d read a Bloomberg article (Liz McCormick) headline. Jumping 9.5 bps to 1.53%, two-year Treasury yields posted their largest one-day jump since February 2015. At one point up 14 bps, two-year Treasury yields were on the cusp of the biggest single-session spike in a decade. Interestingly, the implied yield for December Fed funds futures was little changed for the week at 1.61%.<\/p>\n\n\n\n<p>Investment-grade corporate bonds were under pressure as well. The iShares Investment-Grade Bond ETF (LQD) was down as much as 0.9% intraday before ending Thursday\u2019s session with a loss of 0.7%. While declining almost 1% early in the trading day, the \u201crisk on\u201d backdrop lifted junk bond indices into positive territory by the close.<\/p>\n\n\n\n<p>\u00a0\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: $150 Billion Global Corporate Bond Binge After an extraordinary August, markets are showing no inclination for stability to begin September. Jumping 1.3% Thursday on news of an October restart of trade talks, the S&amp;P500 gained 1.8% for the week. The S&amp;P500 ended the week less than 2% from all-time highs. The Semiconductors surged [&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":[88,3954],"class_list":["post-48443","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bonds","tag-corporate-bonds"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48443","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=48443"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48443\/revisions"}],"predecessor-version":[{"id":48444,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48443\/revisions\/48444"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}