Good morning lads. Looks to me like that pesky yield curve is flattening again, the lowest in over a decade — down to just 57 basis points. For those of you too stupid to know, the flattening and eventual inverting of the US 2-10 yield curve has preceded every recession in the past 50 years. But I’m sure it’s just nothing. Plus anyway, Bitcoins are encroaching on $10,000.
US 2s versus 10s new lows pic.twitter.com/iQNTHdSFaK
— Jonathan Ferro (@FerroTV) November 27, 2017
WTI is down by 1% and futures are down ever so slightly. The Eurostoxx 50 is off by 0.27% and it’s a real snoozer of a day to be long or short. Might as well go back to sleep, traderfags.
Back to the yield curve and its overt unimportance for you gurus out there. It appears to be flattening on both sides of the Atlantic. I’m not quite sure what this means, but it’s probably nothing if I had to guess.
New week, same old bond song: Yield curve flattening continues on both sides of the Atlantic as 10y bonds rally. 10y Bunds now at 0.34%, 10y US yields at 2.34%. pic.twitter.com/ZtMOE56Lrn
— Holger Zschaepitz (@Schuldensuehner) November 27, 2017
Here are some more important headlines for your morning considerations.
Micron target raised to $55 from $39 at Morgan Stanley
SHOP +1.7% (reports Black Friday sales exceeded $1 mln per minute at peak time)
Shopify target raised to $140 from $116 at KeyBanc Capital Mkts
SQ -4.1% (downgraded to Sell from Neutral at BTIG Research; tgt $30
WDC -3.5% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
Roku target raised to $50 at Needham
Vale S.A. upgraded to Overweight from Equal-Weight at Morgan Stanley
Ciena upgraded to Buy from Neutral at BofA/Merrill
Yandex N.V. target raised to $45 from $38 at BofA/Merrill
VMware target raised to $148 from $125 at BofA/Merrill
Increased issuance by the Treasury on one end relative to the other, so higher yields on that part of the curve are just a sign of higher relative supply.
MAKE UVXY GREAT AGAIN #MUGA