Watch those auctions! #USA #bonds #economy
How the weak 30-year bond auction in the US on October 12, 2023, affected the equity market. Investors sold futures contracts on the S&P 500 index to hedge against rising long-term interest rates, which put downward pressure on the stock prices. Selling in futures was not matched by a similar increase in supply on the thematic side, meaning that investors were not re-shorting their go-to shorts. Finally, fixed-strike volatility rose after the auction, indicating higher uncertainty and risk aversion in the market.
NOSTR Financial Network /
npub1g4…zj0ql
2023-10-15 15:54:49
Author Public Key
npub1g43zftx4wwkzlwqthstcqepnztn7r70prqyvm08m56rwa7ks4pwqlzj0qlPublished at
2023-10-15 15:54:49Event JSON
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"content": "Watch those auctions! #USA #bonds #economy\n\nHow the weak 30-year bond auction in the US on October 12, 2023, affected the equity market. Investors sold futures contracts on the S\u0026P 500 index to hedge against rising long-term interest rates, which put downward pressure on the stock prices. Selling in futures was not matched by a similar increase in supply on the thematic side, meaning that investors were not re-shorting their go-to shorts. Finally, fixed-strike volatility rose after the auction, indicating higher uncertainty and risk aversion in the market.",
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