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Rates: Flows into inflation-protected bond funds soared as investors hedge against a potential inflation shock.
As a result of this demand for inflation product, yields on inflation-linked Treasuries (TIPS) continue to fall. These yields are a measure of effective real rates in the US (and have been moving deeper into negative territory).
Credit: All the newly-issued investment-grade debt sent the average duration of US corporate bonds soaring. The second chart below shows the duration-to-yield ratio. Investors are taking more duration risk while getting paid less.
Equities: Which sectors have seen the largest market cap losses this year?
China: Consumer sentiment seems to be deteriorating again.
Global Developments: Global stocks have been pricing in a lot of good news, leading to soaring valuations.
Food For Thought: GDP by metro area:
Edited by Daniel Moskovits
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