MBCC Trading Highlights 11th October'22 - Bond markets are broken!

The most worrying thing in the market right now is US Corporate and High Yield Bond market along with Treasury Bonds. The chart shows the $LQD, Investment Grade Corporate Bonds, and how they have been clobbered and are trading down to below whether the Fed first bought them during the 2020 covid crisis.

It is not only this but also the $HYG as well as long term treasuries like $TLT and US 10 year bonds are trading back at 4%!

What does this mean for Equities/Commodities and also the Dollar? Why is Oil still falling despite OPEC+ cuts? All in today’s note…