Markets to Watch This Week: Rates, Tesla, and Euro
- By Bilal Hafeez
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- 1 min read
In this report, we standardise price changes across different markets to allow for cross-market comparisons.
• Rates continue to take centre stage when it comes to extreme market moves. US 2y yields experienced a 3.3 standard deviation jump last week, followed by US breakeven inflation jumping 2.5 standard deviations and Norwegian 2y yields jumping 2.4 standard deviations.
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In this report, we standardise price changes across different markets to allow for cross-market comparisons.
- Rates continue to take centre stage when it comes to extreme market moves. US 2y yields experienced a 3.3 standard deviation jump last week, followed by US breakeven inflation jumping 2.5 standard deviations and Norwegian 2y yields jumping 2.4 standard deviations.
- Numerous other rates markets had one standard deviation jumps last week too (Chart 1).
- The only non-rates markets seeing extreme jumps were silver and gold – both up 1.4 standard deviations.
- At the other end of the spectrum, the Tesla stock price tumbled with a 1.8 standard deviation decline, followed by EUR/USD (down 1.4 st. dev.), and the Turkish lira (down 1.2 st. dev.).
These moves suggest rates remain the market to focus on along with Tesla and EUR/USD.
Bilal Hafeez is the CEO and Editor of Macro Hive. He spent over twenty years doing research at big banks – JPMorgan, Deutsche Bank, and Nomura, where he had various “Global Head” roles and did FX, rates and cross-markets research.