Are Global Bond Bailouts Next?
Scary action in global bond markets. G7 meeting in Paris. The AI bubble. US-China relations. One bitcoin chart.
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Dear Readers,
Risk is in the air. Can you smell it? It does look like we avoided any Sunday headlines this weekend, but that meant that bond markets opened on Sunday night with another dump. Stocks and bitcoin were both hit. TBL Liquidity followers had a few days of a head start, but it is the bond market that is in charge.
Meetings will begin in Paris in a few hours, and we can’t even guarantee that you’ll read this before any fireworks ignite. In other words, I am expecting something material to be announced:
Japanese Finance Minister Satsuki Katayama said Friday the G-7 are expected to talk about developments in bond markets at their May 18-19 gathering in Paris.
They’ll “talk” about bonds, but talk only goes so far. It might seem like a small thing, but the Indian rupee hit an all-time low this morning. It is the symptom of a development significant in size. The oil price shock everybody warned about is sweeping the globe, and it’s getting hairy. I have a thesis on the type of crisis this will trigger, and the type of policy response (think money borrowing and money printing) I am starting to expect. Early days, but I have some thoughts.
This week will be ACTIVE. Today’s letter discusses bond yields, financial crisis, the potential AI bubble, Nvidia earnings, the Strait of Hormuz, reflections on the meetings between the US and China, and King Volatility arm-in-arm with King Dollar, dragging the rest of the world behind them.
Don’t miss our next free webinar on June 2nd, teaching you how to use TBL Pulse, our powerful intelligence terminal that allows you to track TBL Liquidity and our Bitcoin State Quadrant every day. There’s nothing like it out there, and data maximalists have been all over it. Johan and I will be there for a deeper dive into the top charts we are using for bitcoin market signal.
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