Bond Market is King

[agstar77]

There was only a concept of a deal. Oil prices will surge again as reserves are refilled to be sold at a higher price.

[errolanderson]

Absolute financial bloodbath in Asia . . . .

Japan Nikkei 225 is down 8% in the past two (2) weeks. South Korea KOSPI down nearly 25% in the past three (3) weeks. Majority of tech stocks in-the-red in 2026. AI bubble bursting and NASDAQ index incredibly overbought (IMO).

[errolanderson]

DOTCOM 2.0 —— Bloodbath in the chip sector. Japan Nikkei plunging. South Korea KOSPI index now down 34% from recent highs. NASDAQ, S&P next on the radar . . . .

[errolanderson]

It’s begun . . . .

30-year treasury yield breaking above 5.20%, the highest since the Great Financial crisis. Central bankers are now hooped. They must hike rates, but they can’t hike rates as the U.S. stock market is at-risk of correction. Korea circuit breakers again triggered. Asian markets in some form of collapse, now in-progress.

A watch on oil prices. Iran appears not willing to end this war anytime soon. China rumoured to buy U.S. soybeans. But is this buy the rumour, sell the fact market? Grain futures volatility heightened. Cattle board under duress right now following the lead of equity markets.

The bond market is definitely king. August will be an interesting period for equity and commodity markets . . . .

errolanderson.substack.com

[shtferbrains]

What happens if interest rates take off when we are the fastest growing in the G7?

[biglentil]

Inflation is already up up and away with energy and fert spiking, rates creeping up particularly on the long end, an already weak economy becomes weaker, interest on the debt both private and sovereign becomes unserviceable, defaults spike, bond market craters, real estate craters, stock market craters ...... We have reached the end game of the fiat monetary experiment, central banksters can kick the can no longer.

Friedrich Nietzsche "That which is falling, should also be pushed".

They started their 6uild 6ack 6etter agenda with covid and followed it up with an attack on Iran and the oil supply. In order to "build back" what existed must be torn down. In typical Helgalian Dialectic fashion a crisis is manufactured to get a reaction then offer a "solution" complete with a stakeholder economy, digital ID, social credits, tokenization, meat and travel limits. Buckle up its a script playing out but will it go as planned? Unlikely.

[errolanderson]

U.S. Treasury yields continue to surge . . . . 10-year and 30-year yields continue to power up. This is the debt market rearing-its-head big time.

Stock market investors, enter at your own risk . . . .

[furrowtickler]

Inflation is already up up and away with energy and fert spiking, rates creeping up particularly on the long end, an already weak economy becomes weaker, interest on the debt both private and sovereign becomes unserviceable, defaults spike, bond market craters, real estate craters, stock market craters ...... We have reached the end game of the fiat monetary experiment, central banksters can kick the can no longer.

Friedrich Nietzsche "That which is falling, should also be pushed".

They started their 6uild 6ack 6etter agenda with covid and followed it up with an attack on Iran and the oil supply. In order to "build back" what existed must be torn down. In typical Helgalian Dialectic fashion a crisis is manufactured to get a reaction then offer a "solution" complete with a stakeholder economy, digital ID, social credits, tokenization, meat and travel limits. Buckle up its a script playing out but will it go as planned? Unlikely.

Unfortunately that’s exactly what’s going on

[errolanderson]

MARKET ALERTS . . . FRIDAY AUGUST 7TH

U.S. job data released this morning was a shocker . . . . The U.S. lost 23,000 jobs in June, sharply below trade expectations of an 80,000 job increase.

Canada meanwhile reported a 75,000 job hike in July, well above the expectation of 15,000 job increase.

The USD is under selling pressure and the loonie is firming up. The dollar appears quite overbought. The December Cdn has heavy resistance at 72.50 cents suggesting a full 2 cent recovery in the loonie near-term possible. Could the Cdn dollar break 75 cents in 2027? A watch . . . . .

Another watch . . . U.S. housing market / mortgage industry is taking a HIT. A major mortgage lender in distress reported. This fallout stateside is in-progress and in early stage . . . .

The U.S. economy appears slowing despite all the media reports of a raging economy. The stock market rally has little justification as the majority of stocks stateside are in-the-red for 2026. The correction may be deep (IMO). A watch . . . .

And the bond market, oh the bond market . . . . Warning sirens sounding. Yields climbing. Japan dumping U.S. treasuries, a concern for the U.S. Fed. Keeping the debt pile contained next to impossible. Fed may be forced to hike rates.

A lot of moving parts that can impact markets substantially in the weeks ahead. Subscribe and read-on / listen-on . . . .

errolanderson.substack.com

[shtferbrains]

Watchers are saying " don't/won't miss it this time?