Flat Week, ENORMOUS Moves
Despite a relatively unchanged US equity market, this week was anything but flat for key global data points. We saw a massive move in the FX market as the EUR/US Dollar spiked from 1.08 to 1.12, nearly a 4% rise. West Texas Intermediate (WTI) Crude Oil rose from $56 to $60, over a 7% increase, before settling around $59. The German Bund, mentioned in last week’s blog, has had an even more impressive sell-off this week. The yield on the 10y Bund, which had doubled last week, from 0.07% to 0.15%, has more than doubled again this week, from 0.15% to currently 0.357%. Our own US 10y Bond had a dramatic sell-off as well causing a rise in rates from 1.89% to currently 2.12%, an increase of 12%. These tectonic shifts in asset classes are something we actively monitor.
Germany 10 Year Bond (DE10Y-DE :Germany)