ZH: Gaza war expands as US, UK warplanes bomb Houthi strongholds in Yemen
ZERO HEDGE reports: Update(1840): Reuters and VOA are reporting that US and UK warplanes have begin striking ...
ZERO HEDGE writes:
I had previously said I think 10yr US Treasury yields could bottom in April at 75-85bps. Well six days later we are below that range… risk happens fast I guess.
I think the Fed needs to steepen the curve to stop Japanese and European banks selling to primary dealers and crushing liquidity.
(…)
EU and Japanese banks have lent about $4Tn in this cycle via QE leakage to the US government, hence USD weakness and EUR and JPY strength on risk off/ curve inversion.
So if they actually understand what they are doing, The Fed should do an emergency 75bps. Until then we have liquidation, same as what was happening in October.
But if they do cut, it could turn the tables quite quickly. March is already priced for an additional 55bps of cuts (so 75bps would be a major surprise)…
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