As we have noted we should expect the volatility to continue as some big guns are going at it here trying to figure out who has the better staying power. Seems like the election uncertainty, the continued push of Covid cases (not deaths) is being used as a rationale for further escalation of election illegitimacy and ability of voters to get out and vote. We in particular feel this whole voting scenario is atrocious, in this day and age of digital connectedness, we can’t fathom why there isn’t a voter ID law.
Anyway the markets have fully reversed all morning strength in all our sectors and reversed the early bond weakness and good demand was seen in the 30Y Bond auction where another $23Bn were up, this puts the 2 month total at $1bn shy of the $50 Billion marker. Yields fell after and the other markets continued to slide.
This volatility leads to chopped trade and a scenario where a lot of traders can get caught waffling and losing money on both sides as the turns become unexpected a…
