Bond Yield Blues: A Weekly Dip Across All Fronts

Market Commentary

Based on our latest observations, the market last week saw silver, HSI, and ASX200 as the outperformers, with returns of 6.38%, 3.65%, and 3.39% respectively. On the other hand, CSI300 and USD were the underperformers, with returns of -0.82% and -1.55% respectively. The market sentiment can be considered bearish as both SPX and NDX had negative returns.

In terms of treasury yields, all four treasuries experienced a decrease compared to the yields from one week ago. The 30-year treasury had the largest decrease.

Based on risk/reward ratios, NDX has the highest ratio of 2.69, followed by DAX with a ratio of 1.53 and SPX with a ratio of 1.77. On the other hand, HSI has the lowest ratio of -0.59, followed by CSI300 with a ratio of -0.78 and STI with a ratio of -0.44. This indicates higher potential returns for the same level of risk compared to securities with low ratios.

Securities such as Brent, WTI, Gold, and Silver have lower correlations with other assets and commodities, providing potential diversification benefits to a portfolio.

In terms of global events, there was a mix of news ranging from the release of Twitch drops for 'Escape From Tarkov Arena' to Apple's rumored updates for AirPods and tighter passcode security measures on iPhones. The market also discussed the introduction of Intel's Core Ultra processors and reviews of Lenovo's ThinkPad laptops. Additionally, discussions on college tuition costs, possibilities of recession, and recent jackpot winners were notable.

Looking ahead, some upcoming economic data to watch out for include US GDP growth rate QoQ final, US core PCE prices QoQ final, US PCE prices QoQ final, US durable goods orders MoM, and US non-farm payrolls. Any surprises in these data points may cause market fluctuations and should be monitored closely.

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