Doesn't tell the whole story of today though - truth is that
bonds are not selling off universally. Just the long end of the
curve. We're in the process of de inverting. If it continues -
watch out....that's when the market typically experiences the most
pain in the inversion cycle. As I expected, the long end is
rising to catch the short end, not the other way around (higher for
longer is finally getting priced in).
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I got this question so
Much of the market weakness can be explained by this ...
Posted by DigiNomad on 2nd of Aug 2023 at 03:19 pm
I got this question so many times today that I can just forward how I've been responding:
credit downgrade = sell bonds = higher rates = higher dollar = lower BTC....all else remaining equal.
Doesn't tell the whole story of today though - truth is that bonds are not selling off universally. Just the long end of the curve. We're in the process of de inverting. If it continues - watch out....that's when the market typically experiences the most pain in the inversion cycle. As I expected, the long end is rising to catch the short end, not the other way around (higher for longer is finally getting priced in).