The Daily Shot Brief – June 29th, 2020

Greetings,

Administrative Update

Please note that the Daily Shot will not be published on Friday, July 3rd.

Rates: Flows into inflation-protected bond funds soared as investors hedge against a potential inflation shock.

Source: Goldman Sachs

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).

Source: The Daily Shot

 

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.

Source: III Capital Management

 

Equities: Which sectors have seen the largest market cap losses this year?

Source: @financialtimes; Read full article

 

China: Consumer sentiment seems to be deteriorating again.

Source: Morning Consult; Read full article

 

Global Developments: Global stocks have been pricing in a lot of good news, leading to soaring valuations.

Source: BCA Research

 

Food For Thought: GDP by metro area:

Source: @adam_tooze, @bopinion; Read full article

Edited by Daniel Moskovits

To receive the Daily Shot Premium, you need to be a subscriber to The Wall Street Journal. The Daily Shot readers qualify for a special membership offer of $1 for 2 months and can join simply by clicking here.

If you are already a WSJ member, you can sign up for The Daily Shot at our Email Center by clicking here.

The Daily Shot Premium is also available online at DailyShotWSJ.com

If you have any issues at all, please contact a Customer Service representative by calling 1-800-JOURNAL (1-800-568-7625) or sending an email to support@wsj.com.


Contact the Daily Shot Editor: Editor@DailyShotLetter.com

 

Leave a Reply