Rate Cuts Everywhere

Update on MEGA8s and MSTR/Vol Strat plus Settles

Just a quick note today subscribers and thank you to all of those who have supported our work, just a few more subs and we hit 500! Alright so today we saw rate cuts from the ECB, 25bp and a hefty 50bp cut from the SNB in Switzerland. This is the 4th cut by the ECB this cycle moving the deposit rate to 3.0%. The SNB cut their rate from 1.0% to 0.5%. So you can see the Federal Reserve has the global precedence behind them and they too will deliver a rate cut next week!

We also saw PPI uptick to 0.4% MoM higher than expected but we really aren’t going to make much out of this single print. However the bond markets continue to steepen, meaning the long end rates are moving higher quicker than the short term rates, following up on yesterdays bear steepening move:

Today’s move has pushed the US Govt 10y back above our 4.291% marker, but will see how the week settles out tomorrow: