Hello traders,
I hope you had a great weekend and some time off screens.
Our trade idea from last week’s weekly outlook worked well as Nasdaq shed 2.7% and S&P lost 1.71%.
We are essentially in low volatility summer regime and most of the decisionmakers are enjoying their time off.
20% TO THE BIG GUY
The biggest news of last week was that the Treasury was going to increase the buybacks on the long-end of the bond market.
This is outside the QRA process, so it means that Bessent & co. are not sitting pretty with where the yields are at the moment.
The buyback isn’t really about the size but about the intent. Essentially what the admin is signalling is that if yields get uncomfortably high, they would use any means necessary to put a backstop on their rise.
What this essentially does is
