Summary: Today we break down what spooked the market on Friday: the massive surge in US yields after the US CPI came in hotter than expected and not least, as the long-term inflation expectations in the preliminary June University of Michigan sentiment survey jumped to new highs. The US yield curve is suddenly close to inverting again after Fed expectations were marked sharply higher for coming meetings. We also look at concerns that Chinese serial lockdowns will continue to dog global supply chains from here, the risks in the crypto space aggravated by the unfolding meltdown, and a rocky ride ahead this week with multiple major central bank meetings on tap, headed by the Wednesday FOMC and whether Powell and company will have to re-up the hawkish stance. Today's pod features Peter Garnry on equities and John J. Hardy hosting and on FX.
Listen to today’s podcast - slides are also located via this link.
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