The DTCC’s decision to double margin requirements for mortgage-backed securities, alongside the recent MBS VaR stress testing increase, reveals growing concerns. As the 10-year Treasury yield experienced a sharp drop over the past two weeks, accelerated by weakening manufacturing and labor market data, the financial landscape is becoming increasingly uncertain.
🚨#DTCC DOUBLES THE MARGIN REQUIREMENTS FOR MORTGAGE BACKED SECURITIES 👀🚨
Also MBS VaR stress testing +50%, banks will have 2 weeks to prepare (right when US Government will be shutdown)
Well.. to me is clear the DTCC sees what’s coming 🤷🏻♂️ t.co/MTL9usrC2i pic.twitter.com/04eo7lm2JF
— JustDario 🏊♂️ (@DarioCpx) November 6, 2023
BREAKING: 10-year Treasury yield hit 5.021% on 23rd Oct
This was the highest level since 2007
Yields had begun getting out of control
But since then, 10-year yield fell by a staggering 10% + in JUST 10 trading days
The fall in yields was accelerated by the weakening… pic.twitter.com/1pQ0pr9kR4
— Game of Trades (@GameofTrades_) November 7, 2023
Fed cutting ✂️
next year? 🤔 pic.twitter.com/r3pQ7V6ft5— Win Smart, CFA (@WinfieldSmart) November 7, 2023
Fed’s Kashkari: Inflation Battle Continues, Further Action Possible
Minneapolis Fed President Neel Kashkari asserts that the fight against inflation isn’t over, indicating readiness for further rate hikes if needed. Despite recent stable rates, Kashkari remains cautious, emphasizing the need for more economic data to determine future actions. He notes ongoing economic strength, suggesting no immediate rate cuts are on the table until inflation significantly slows.
GS Financial Conditions pic.twitter.com/hjDtoPDHV4
— Win Smart, CFA (@WinfieldSmart) November 7, 2023
Small Business Wage Data pic.twitter.com/otkqnbnROi
— Win Smart, CFA (@WinfieldSmart) November 7, 2023
Q4 down is rare for stocks. The biggest Q4 decline in the past decade was 2018.
Bulls can't remember what they had for lunch yesterday, much less what happened five years ago.
It's all story-telling circle jerk. pic.twitter.com/73GqIScqWe
— Mac10 (@SuburbanDrone) November 7, 2023
Markets always seem to have an insane rally right before the rug gets pulled. t.co/3JCUwJvMAM pic.twitter.com/RfysYikOth
— Financelot (@FinanceLancelot) November 6, 2023
The last 3 market crashes have occurred prior to elections, yet people still think "It's different this time".
Market Crash: February 2020
Election: November 2020Market Crash: September 2008
Election: November 2008Market Crash: September 2000
Election: November 2000 t.co/3JCUwJvMAM— Financelot (@FinanceLancelot) November 7, 2023