Over in Europe, men in tight pants are buying stocks furiously. The DAX and CAC are up greater than 1.5%. Here in the state, the Dow is looking to soar by 150, Nasdaq by 85. The news is curiously absent from the tape. I did see this — some fuck over at Carlyle speculating like a motherfucker.
“I do think there will be a resolution before the end of the year” in the U.S.-China trade war, says private equity billionaire David Rubenstein.
Rubenstein says he’s spoken to U.S. and Chinese officials. “My view is both sides want a deal.”
President Trump and Chinese President Xi Jinping will meet at the G-20 summit later this month, Rubenstein predicts.
But the important thing happening this morning is in the bond markets. Listen to me and look at me — these fucking yields, god damn it, are out of control to the downside. People are plunging into bonds like it was the end of days.
Right now the 10yr is at 2.02%, down more than 6 basis points. The 30yr is at 2.51%, placing 30yr mortgages sharply under 4%. The cost of capital is now cheapest in years, happening at a time when the economy is great. So, and this goes without saying, the perception is this will be inflationary. We haven’t tried lowering rates while the economy was ripping. Maybe this does the trick!
As such, gold is rocking higher — now up 0.8% to 1,353.
Lastly, fake meat is above $200.
— jeroen blokland (@jsblokland) June 18, 2019
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