Week In Review – January 5th, 2018
What a first week to start the year. Frothy the Snowman refuses to melt!
Emerging markets still all the rage.
No supply, my friends. Global markets have gone parabolic.
– Greece bond yields hit 12-year low the post-bailout era beckons;
– Indonesia continues to attract yield seekers;
– Mexico 10-year yields almost 20 bps lower with talk of bringing 10-year dollar bond at
– The dash for trash continues with CCC in over 50 bps on the week. B in 20 bps ;
– DM bond slightly higher. Fears of overheating creeping in though the weak
employment number alleviated some worries.
– Dollar index relatively flat;
– EM currencies strong as capital flows continue to fly into the sector.
– EM stocks continue melt-up;
– Japan making 26 year highs on growth surprise. Nikkei still almost 40 below 1989
Other Risk Indicators
– U.S. tech still rocking the free world;
– U.S. semiconductor ETF up another 5 percent after stellar 2017. A.I. chips, bro;
— VIX collapses again. Approaching new all-time lows.
– Iron ore higher probably due to upward revisions to China growth;
– Gold continues to rally as Bitcoin wobbles;
– Nattie gave back some of last week’s 10 percent gain even as America freezes.