Fed Minutes Flip The Script: Officials Open Door To Rate Hike

BenzingaMay 21 04:35

Is the ghost of 2007 returning? Bond markets sound the alarm: the era of cheap money may be coming to an end!

The yield on the 30-year U.S. Treasury bond surged past 5.2%, hitting a 19-year high, as a massive $15 billion sell-off swept through the market, evoking echoes of the 2007 crisis. Fund managers have increased their equity positions at the fastest pace on record, sending a signal starkly at odds with that from the bond market; technical indicators now flash warnings that yields could explosively breach 8.6%—suggesting the era of cheap money may truly be coming to an end.

wallstreetcnMay 20 14:44

Selloff Slams Market for One Hour! U.S. Treasuries See 'Capitulation' Trade: 30-Year Yield Hits 19-Year High

① Concerns that investors are increasingly worried the central bank will be forced to raise interest rates pushed the yield on 30-year U.S. Treasury bonds to its highest level in 19 years on Tuesday; ② A sudden wave of large-scale sell-offs in the U.S. Treasury futures market during early New York trading hours on Tuesday intensified panic in the world’s largest government bond market, valued at $31 trillion.

cls.cnMay 20 09:09

U.S. Treasuries face a 'capitulation-style sell-off,' with the shadow of high interest rates looming over equity markets.

U.S. Treasuries faced a 'capitulation-style' sell-off, with the 30-year bond yield surging to 5.18%—its highest level since 2007. This sharp volatility has begun spilling over into U.S. equities, with small-cap stocks hit hardest, plunging 1.6%. However, intraday bargain hunters emerged, and buyers of call options aggressively stepped in, briefly flattening the Nasdaq's losses. NVIDIA’s upcoming earnings report will serve as the ultimate stress test for the entire AI rally.

wallstreetcnMay 20 08:43

A sharp drop in CTA buying in the U.S. stock market could trigger a sell-off of up to 100 billion USD if the S&P 500 falls by 3%.

The Bank of America model indicates that the potential for incremental CTA buying is extremely limited, while the risk of downside liquidation is intensifying. The key trigger levels are as follows: approximately 3% below the spot level for the S&P 500, about 5% below for the Russell 2000, roughly 10% below for European and Japanese equity indices, and a lower probability of triggering within the next week for the Nasdaq. If these levels are breached, global equity sell-offs by CTAs could reach around USD 100 billion, including approximately USD 50 billion in the United States, USD 35 billion in Europe, and USD 15 billion in Asia.

wallstreetcnMay 18 10:38

Small Caps Are Still Riding High Despite Latest Setback. But More Trouble Could Lie Ahead.

MarketWatchMay 16 20:30