FFTY - Bonds Are Once Again More Volatile Than Stocks

2024-02-05 22:35:00 ET

Summary

• It is normal to see huge swings in bonds and stocks on a day when the Fed Chairman releases his FOMC statement and holds a press conference.
• What is far from normal, however – although we have seen it occasionally – is to see a sharp selloff in bond prices, pushing the 10-year yield up 17 basis points in one day, on Friday.
• Investors are selling first and asking questions later, and I believe that if more banks deliver news of rising loan loss provisions due to CRE issues, the pressure on the regional banking sector would increase.

It is normal to see huge swings in bonds and stocks on a day when the Fed Chairman releases his FOMC statement and holds a press conference, as he has earned a reputation for spicing things up during the presser....

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