Yield Curves Hit & America Forever Changed
It is a sad day in America and this has nothing to do with your political affiliation. Magnelibra is strictly Constitutional Libertarian and the current Republican/Democrat affiliations still get their marching orders from K Street lobbyists or more simply put, they follow the money. It is unfortunate that today we see the indictment of a past US President. Something that has never happened before, not even to Tricky Dick. Yet here we are today with a current president whose past antics despite being exposed are well…simply brushed away but whose powers force the DOJ to indict Donald Trump. There is no precedent in American history for this, but Magnelibra is considering America for ever changed, imprisoning political opponents is a banana republic type of thing and no American should be proud of this moment. Magnelibra believes this will forever change America and will go down in history as the absolute turning point for American respect around the world.
We have touched upon this many times and it does worry us. It worries us when our global leaders, like Bin Salman, Putin and Xi do not respect our leaders, do not respect our way (old way now). These things lead to conflicts, lead to abrasive decisions and we don’t believe the American public understands the grave danger this puts us all in!
Ok as far as the markets, well we have a US yield curve getting hit hard today as we noted yesterday, the US Treasury is on tap for a massive $296Bn in total issuance next week. Monday and Tuesday see $206Bn of Bills and $90Bn of Notes:
The US yield curve today is building in quite a front end concession here with the 2Y dropping some 6.7bp thus far with a heavy flattening tone:
Equities are showing some decent strength, one of the stand outs today is Netflix, whose subscription base has seen solid growth after the crackdown on sharing:
Overall the June Nasdaq futures have respected our blue band shown below and continues to move higher now:
A close today above 14580 in the June futures would be bullish from a technical perspective as it would negate the 0.786 technical level!
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