Rising bond yields despite falling inflation and macro momentum signals worst-case scenario. Many investors lack recession experience, leading to a warped understanding of risk.

It cannot also just be weird flows in thin markets currently.

But I dislike when bond yields trade UP, when macro surprises are clearly SOFT

— Andreas Steno Larsen (@AndreasSteno) December 23, 2024

Excellent read.

Too many investors today have never lived through hard times or a recession thus their understanding of “risk” is completely warped.

Many believe it doesn’t exist.

The youngins should really give this a read: pic.twitter.com/XQkztGQG8w

— QE Infinity (@StealthQE4) December 23, 2024

Negative breadth, rising volatility, and only mega-caps prop up fragile market amid yield surge.

Breadth is negative and vol is bid. This "market" is hanging by the thread of a few mega caps as the algos pull out all stops to keep the Santa Rally going. pic.twitter.com/WxjCIpY1ns

— Mac10 (@SuburbanDrone) December 23, 2024

The 10 year yield has ripped higher all day. This despite a soft PCE reading on Friday.

We’re closing in on the October 2023 post rate hiking cycle high of 4.92%.

If we break that the last time the 10 year was higher was June 2008 at 5.14%. pic.twitter.com/P6u9tZJmi1

— QE Infinity (@StealthQE4) December 23, 2024