US Fed is force liquidating BOJ & BOE at the lows.
UST selling push yields higher > inflation higher > more QT > further foreign selling pressure > yields higher. vicious cycle.
MYR also stuck in this loop 🔁, only we don’t have as much dollar reserve to sell. last ATH: rm4.74 / $1 🥲
Hope you hedged with me. Think I made 15-20% hedging my dry powder. Next targets was posted here — link1, link2
#MYR
#UST
#Macro
UST selling push yields higher > inflation higher > more QT > further foreign selling pressure > yields higher. vicious cycle.
MYR also stuck in this loop 🔁, only we don’t have as much dollar reserve to sell. last ATH: rm4.74 / $1 🥲
Hope you hedged with me. Think I made 15-20% hedging my dry powder. Next targets was posted here — link1, link2
#MYR
#UST
#Macro
BOJ dropped a bomb 💣
💬 my take
1) seems even Japan have to deal w inflation nw.
2) might see #BOJ pivot soon.
3) immense pressure on #UST w Japan being biggest US treasury holder.
🐣
https://twitter.com/jeannekong/status/1605528249815048192?s=46&t=M-Tv6EEbP-nBxjpPOHXJ1Q
1) seems even Japan have to deal w inflation nw.
2) might see #BOJ pivot soon.
3) immense pressure on #UST w Japan being biggest US treasury holder.
🐣
https://twitter.com/jeannekong/status/1605528249815048192?s=46&t=M-Tv6EEbP-nBxjpPOHXJ1Q
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US 2yrs plunged -100bps intraday in response to Feds new tool:
BTFP
buy the fucking pivot
oops, Bank Term Funding Program
many smaller US banks has liquidity issues. Why?
money parked in long duration UST 💸 > underwater as Fed hikes 🦅 > depositors asking for money back > liquidity dries up 🩸
Tonight’s FOMC rate decision & more importantly fwd projections will be key for 2H2023 market directions.
#FOMC
#UST #IYC
#BTFP
BTFP
oops, Bank Term Funding Program
many smaller US banks has liquidity issues. Why?
money parked in long duration UST 💸 > underwater as Fed hikes 🦅 > depositors asking for money back > liquidity dries up 🩸
Tonight’s FOMC rate decision & more importantly fwd projections will be key for 2H2023 market directions.
#FOMC
#UST #IYC
#BTFP