Via Global Macro Monitor,
On Tuesday, June 27th, Super Mario said this,
“Deflationary forces have been replaced by reflationary ones.” – Mario Draghi
And here is how global 10-year bond yields reacted,
The German 10-year Bund yield increased 77 percent — OK, from a low base — and bonds across the world from Canada to Australia to the United States were tattooed.
Change In Fundamentals?
Absolutely not!
One day after the US announced it would sell $1.42 billion in weapons to China's offshore nemesis Taiwan, Beijing lashed out at the United States, saying it was "outraged" and demanded the US revoke immediately its "wrong decision", saying it contradicted a "consensus" President Xi Jinping reached with his counterpart, Donald Trump, in talks in April in Florida.
The proposed U.S. package for Taiwan includes technical support for early warning radar, high speed anti-radiation missiles, torpedoes and missile components.
S&P futures rebounded shortly after the stronger than expected European CPI print, rising 0.3% to 2,426, as markets try to forget all about yesterday's brief 50% VIX surge and tech rout, which trimmed the seventh consecutive quarterly gain for the S&P 500 Index to 2.4%. Europe shares rose 0.4%, led by tech stocks, after a drop in Asian markets, as oil and the dollar gained.
Now that the Supreme Court has approved a “narrower” version of President Donald Trump’s travel ban, the measure is set to go into effect for the first time since late January, when it sparked chaos and protests at airports across the country.