Greetings,
Equities: Rising real yields continue to pressure stocks.
Credit: Investment-grade corporate debt duration has been rising over the past couple of decades, making the market more vulnerable to rate increases.
Large US corporate bankruptcies are increasingly filed in Houston courts.
Rates: The Treasury curve continues to flatten at the longer end as the market expects the Fed rate hikes to slow US economic growth.
Since the Treasury yield curve has already flattened a lot, the Fed may not be able to raise rates aggressively without inverting the curve, which typically preceded a recession, according to Alpine Macro.
China: Industrial production growth has slowed compared to pre-pandemic levels, particularly in the auto, metals, and mineral sectors.
United States: New business applications have been unprecedented since the start of the pandemic.
Food for Thought: US political party affiliation, recent trend:
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com
