Why Friday Could See A Huge Move In Treasuries

Bottom line: if Powell does not surprise the market and keeps a modestly (but not overly) dovish tone, Friday will be a non-event contrary to the legendary "hype" level the coming Jackson Hole virtual symposium has attained. On the other hand, if Powell does surprise by being either too dovish, or too hawkish and explicitly suggesting that the taper is about to begin, then all bets are off and a violent VaR shock looms for all rates and 60/40 portfolios, which will then immediately cascade to all duration derivatives (such as the FAAMG generals) before it sweep across the stock market.

1 2 3
View single page >> |

Disclosure: Copyright ©2009-2021 ZeroHedge.com/ABC Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.