MBCC TH 28th July'23 - "Oopsies the BoJ just ruined the party, what is happening to Bond yields? Macro doesn't work...well until it does!"

Big surprise announcement by BoJ and then ECB Lagarde saying “WE WILL DEFINITELY NOT CUT RATES” followed by Fed' “we see inflation not coming down to 2% till 2025”….these are not synonymous with markets wanting or needing cuts in 2024!

Most people this year have seen macro not work…but thats how macro works…it doesn’t work till it does as one morning wake up to see carry trades unwind and all havoc break loose. Liquidity is driver for all risk assets, ignore at your own peril!