Rekt Mkts: Rates just keep going...

Honestly when you take a step back risk assets have held up pretty well given the move in rates...we've seen a rather shallow dip form across the board, and granted things could still move, it just makes me think that when we do eventually see some respite, the pain trade continues to be higher...I still favour adding to longs here.

US PCE inflation is due today. Williams said yday there was no need to rush another rate hike, which helped take some heat out of October hike bets. That gives bonds a bit of room to recover, altho it isn't a promise that tightening is finished and we haven't really seen it reflected in yields quite yet. A softer core reading would help that argument; a hot one would make it harder...maybe a bit more focus on today's number than usual given the current backdrop. The US 10Y is around 5.23%, down roughly 2bps on the day, while the 30Y is around 5.57%, down about 3bps. Some relief after the selling, but obv basically still sitting at recent highs. Gold futures are around $4,210. WTI futures are around $90.70, bouncing after yday's drop to a $89.38 settlement. Reports of recovering Middle East exports helped take pressure off oil yday, even without a breakthrough in US-Iran talks.

S&P 500 and Nasdaq-100 futures are little changed. The relief in bonds hasn't turned into much of a stock rally, and PCE comes before the cash market gets its say. The big thing to watch to day is Micron earnings after mkt close...I went into a bit more detail on thoughts yday but generally speaking I am not really sure what to expect other than feeling like it's worth a punt from the long side as I think positioning is probably very different compared to last time. Either way, I think the entire AI + memory space is one to watch out for today.

Relatively small net ETF flows yday for BTC/ETH, while w'ere seeing a small rebound in prices with BTC sitting just below 84k and ETH just below 2700. In general the majors have held up well in the recent rate selloff and it's altcoins that got hit the hardest although worth noting all that stuff is up big in the last few weeks and pullbacks are natural. I'm inclined to think we are set to see an overall crypto bounce here with the favoured alts hitting new local ATHs...as we say...got to risk it for the biscuit...just don't do your bollocks on the leverage. Good luck today.