Bank bid blows up
by David Llewellyn-SmithThe Australian dollar is hovering at the highs this morning even as S&P futures fall:
Bonds are firm:
XJO has gapped lower at the open:
Big Iron is up:
Big Gas down with oil’s struggles:
Big Gold is warm as DXY softens:
The Big Bank bid has run into a big reversal. The whole value rotation thing is supposed to happen as interest rates rise. In bank’s case, it is so that net interest margins widen with a steepening yield curve. There ain’t no rising rates today:
Big Chunt still has no business but why let that stop ya!
Still, after a ripping run of fakeflation, profit-taking is to be expected.
David Llewellyn-Smith
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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