The 2s/10s curve is around 22 basis points steeper this week. Excluding the U.S. regional banking sector shock in March, that would be the biggest weekly steepening since April last year, bigger than anything around the pandemic, and one of the biggest in well over a decade.
The 10-year and 30-year yields are at their highest levels since November, comfortably above 4.0%, and the latter is on track for its biggest weekly rise this year.
The S&P 500 is having its worst week since March, down 1.7% and only its third down week in 12, and the MSCI World index is on a similar track, already down more than 2% on the week.
Global currency market and S&P 500 equity volatility are the highest in two months, and implied volatility in dollar/yen trading is registering its steepest weekly rise since March
Yeah, I also got crushed in the TLT CALLS but holding & building while rolling CALLS ...and SELLING CALLS has been a saviour.
"Investors in Asia may well have one aim in mind Friday - get through the day unscathed and close out what has perhaps been the first proper 'risk off' week since the U.S. regional banking shock in March.
The creeping rise in volatility and heavy selling this week can be blamed on a few factors, like Japan's surprise policy shift and Fitch's shock U.S. credit rating downgrade, but one culprit is emerging above all others - the U.S. yield curve.
The long end of the U.S. Treasury curve is getting crushed, triggering a surge in long-dated yields and 'steepening' of the curve. The rapid moves are unnerving investors and come just as many stock markets are at or near historical highs."
