The everything selloff could deepen with negative liquidity outlook | MarketTalk: What’s up today? | Swissquote

Show notes

The global selloff intensified yesterday, after the FOMC minutes released Wednesday highlighted that the Federal Reserve (Fed) continues to see significant risks to inflation. And if that’s not enough, Atlanta Fed’s GDPNow printed an eye-popping growth forecast of 5.8% for Q3 on Wednesday, up from 5% printed a day before. We see some respite in the US 2-year yield that bounced lower from the 5% mark earlier in the week, and the 10-year yield spiked above 4.30% before falling back to 4.25% this morning. But the selling spree in global bond markets continue, as the US dollar continues strengthening against major peers.
And note the upcoming changes in US Treasury bond and T-bill issuance may further weigh on US bond valuations, and market liquidity.
In this context, this simultaneous selloff in stocks and bonds indicates that the market liquidity is well draining and Bitcoin, which is a gauge of market liquidity, slumped more than 7% yesterday and traded close to the $25K level.
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