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Writer's pictureStéphan

FED's #Waller key today / Stellar 5y UST auct / #USDJPY 'above' previous interventions levels / Month, Quarter-end flows to dominate now



  • At these prices, next year's Easter bunnies will be 3x the price! Choccy crisis! as cocoa prices hit 10K a ton

  • U.S core PCE on Friday, FX markets open, Gold (precious metals is not), low liquidity is data 'out of expectations' >>> UST 5y notes auction of $66bn yesterday went off like a dream, by 1bp through, 7y auction today >>> FED's Waller important today, see FT article below, big picture, we continue to think the market may well move to 2, then 1 cut only in 2024 (sticky inflation, strong employment still, for now economy remains relatively strong, with all this fiscal spending!

  • Closing in on Q1 2024, with VIX hitting all-time lows vs cross asset volatiliies

  • #USDJPY near the big 152 marker, highs seen 1990 and 1998 when BoJ intervened, levels now 'beyond previous interventions levels, they will need more than 'talk talk', ''Japan's finance minister talked again about "decisive steps" to address "disorderly" currency moves

  • China sued the US at the WTO over rules that discourage EV makers from buying Chinese battery materials. The Inflation Reduction Act and related regs are “discriminatory” and have “seriously distorted” the global supply chain

  • U.S 2nd tier data yesterday was a little softer, Philii Fed, Richamind Fed manuf, Dallas services and consumer confidence

  • TSMC : The world's biggest chips producer is on a high-speed hiring spree

  • #XAUUSD : Switch to gold standard could stabilise prices – Philadelphia Fed research

  • FUNDSTRAT: “.. Our top idea for 2024 is small-caps, where we see at least 50% upside .. Russell 2000 companies are set to grow .. faster than the $SPX .. Valuations are far more attractive .. when CEO confidence recovers, we also see the low valuations as setting the stage for synergistic M&A ..”

  • Markets : enjoying this low vol period, liquiditie splenty and 'mem' stocks franzy. UST 5y auction showed no issue whatsoever yesterday, usual bond bid into month quarter.end mentioned....together with a 'sell eq' at some point, all well documented by major market makers


 


FED's Waller speaks today, he first spoke about this in Q4, so he is the key










Ackman going a little Buffetesque in his annual letter





NAture! whaooo


Brutal... WHo pays up for the cleaning up and replacement ?



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