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Market Update – October 4 – On the way to old normal


Yesterday at 8:30am ET (New York Time). JOLTS’ August job openings again revealed a remarkably buoyant labour market Analysts had expected 8.8m new vacancies, but there were 9.61m. Although the Fed’s main objective is to reduce inflation, the Fed doesn’t want this. ”higher for longer” immediately resonated in traders’ minds. Bonds sold out immediately The 10-year Treasury yield soared to its highest since 2007, up 11 basis points to 4.80%. Futures for the 30y year also fell by as much 1.58%, while the yield reached 4.924%. There are definitely Deeper fundamental reasonsThe continuing large US deficit At the same time China and Japan no longer buy from each other US debt, the former selling $40B A month has passed since April, and we have already dumped $300B Since 2021 The abnormality is not in the rates of the past 10 years, but those that have been observed since 2021. It is back to normal..

10Y US Future

Another thing that caught our attention was the fact that after the release of the data the USD immediately surged, breaking 150 against the JPY and touching 150.16. Here’s where the BOJ has finally INTERROVED Caused the…

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