Monday, October 2nd is going to be interesting

by smstal

It’s looking to be an intersection for a lot of things:

Government shutdown
Restart of student loans
Increasing inflation
Real estate blunder with mortgage rate
Fed payments on commercial interest

Just a thought. Let me know what you think!

A strange pattern emerges when you compare spikes in the Japanese 10 Year Yield to the VIX.

Every other spike in JPY 10Y signals a sharp rise in the VIX, which we're entering now… bizarre correlation. https://t.co/hKRpqrBC4m pic.twitter.com/HGVfDfCbgc

— Financelot (@FinanceLancelot) September 29, 2023

The Federal Reserve’s hawkish stance on interest rates, and determination to reduce its balance sheet, may inadvertently be stoking financial stability risks by encouraging hedge funds to extend or even increase their “basis trade” bets in the U.S. bond market.

h/t InternationalTop2405