The onset of the liquidity crisis is imminent. Carnage in small caps and Tbonds is coming for big caps next.

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-DXY breaking out towards 107
-10 yield is nibbling at 5%
-Futures red and accelerating lower as I type this.
-Cypto suflee is crushing down.

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After Massive Bond Losses World’s Oldest Central Bank Seeking $7 Billion Bailout

Rising interest rates have led to substantial losses on global fixed income securities, totaling over $100 trillion. The Federal Reserve has incurred significant losses, with operating losses surpassing $111 billion. Despite these losses, the Fed remains financially unscathed due to its ability to print the world’s reserve currency. Other central banks aren’t as fortunate. The Bank of England required a bailout after suffering from the Quantitative Easing program. The Riksbank, Sweden’s central bank, revealed a loss of SEK 80 billion in 2022 and requires a capital injection to restore its equity. Other central banks may soon follow suit, facing financial challenges from rising interest rates.

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