Markets shot higher like a German racing towards Paris, circa 1940, on news that the Bank of England might offer stimulus via rate cuts, in light of BREXIT. The desired effect, naturally, was accomplished. The FTSE is punching the DAX in the face now, higher by 2.3% v 0.7%. We’ve seen a significant underperformance in the DAX v the FTSE since BREXIT was announced, probably because they have more to lose.
The British pound has been crushed on this news, off by 1.4%.
The real story here, in my opinion, is the effect it’s having on rates–debilitating really (for banks).
Here’s the interesting part. Yields are plunging everywhere but Germany.
I guess you can chalk this up to smart arbing, as traders sell over priced bunds for everything but bunds.
Markets are at the highs for the session and TLT is higher by $1.25. The ark floats; but the fucking giraffes aren’t allowed back on.
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I’ve changed my mind. I’ll be eating giraffe steaks with Chianti in lieu of Port
This is another confirmation of more long term dollar strength coming, lower commodity prices, and lower treasury yields.