Is This Capitulation or Powell Allowing Big Funds to Diversify?

Technical Charts, Yield Curves and More

We know that the FRB has done a complete 360 in just under 2 weeks as the FRBs own WSJ mouthpiece put this on X yesterday:

We didn’t see it because the sheep of a mouthpiece for the Fed and the WSJ reporter has blocked us on X. Our data is too much for him to handle and the reality of our 11.21% annualized asset growth rate.

This post does however, point out how deranged Powell and the FRB are to just flip flop in 2 weeks, one could easily determine that the FRB is manipulating markets.

This is what makes the game of investing and trading so difficult. You have an entity with absolute power but offers zero continuity in either their actions nor their words. It is astonishing to us that as a society we allow such an entity to exist, an entity that controls not only the supply of money, but where it goes and continually offers double speak and misdirection.

Enough complaining, it is what it is so let’s take a look at today’s settlements where the US bond market has made an amazing come back. There was a time where the bond was down 20% now virtually unchanged on the year. So just a massive amount of capital flowing into bonds here. We are just waiting for Bill Ackman to come forward that his is long bonds now! We also saw a major move in Silver today + $1.465 on the day, the contract value winner:

Speaking of bonds, lets take a quick look at the US yield curves and we highlight the yield highs and lows on the year and where we currently stand today as far as the yield drops they are massive, 30Y (-94bp) 10Y (-97bp), 5Y (-101.4bp) and 2Y (-82.3bp).

Source: www.magnelibra.com

The real question becomes will the FRB speakers over the next month try to walk some of this back?

Have things deteriorated in some sector of the economy to prompt such an abrupt about face? Maybe its all just an FRB balance sheet issue, we said before the FRB started Quantitative Tightening that we would be shocked if they ever got back below $7.5T and guess what, today’s weekly H4 showed a minor increase week over week in their assets, which now stand at $7.78T.