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As Stocks Sink, This Is What RBC Is Looking For

As Stocks Sink, This Is What RBC Is Looking For

Despite the panicky "reverse engines!" dynamic last Friday in the US rates market - with popular “reflation” trade expressions (which had been seeing vicious unwinds) suddenly breathing new life as Fed’s Dudley clarified his "misconstrued" comments on "little pause" with short-term rates hiking -  RBC's head of cros asset strategy Charlie McElligott points out that 5y5y inflation remains stuck, EDZ7/8 curve is flattening again, and the EDZ789 butterfly too is again fading.  

China Threatens To Bomb North Korea's Nuclear Facilities If It Crosses Beijing's "Bottom Line"

China Threatens To Bomb North Korea's Nuclear Facilities If It Crosses Beijing's "Bottom Line"

With everyone putting down new and/or revised "red lines", be it on Syria or North Korea, it was now China's turn to reveal its "red" or rather "bottom line", and in a harshly worded editorial titled "The United States Must Not Choose a Wrong Direction to Break the DPRK Nuclear Deadlock on Wednesday" Beijing warned it would attack North Korea's facilities producing nuclear bombs, effectively engaging in an act of war, if North Korea crosses China's "bottom line."

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