But the record run of low volatility continues: 96% of the trading days this year have seen an intra-day move of less than 1%
That’s a record (see chart below)
The action in FX and bond markets hasn’t been anything to write home about either.
Markets will fool most people most of the time. And most people are underweight/short bonds. This has implications for USD https://www.tradingfloor.com/posts/us-inflation-rises-but-traders-doubt-fomc-resolve-9049296
There’s not much on the economic data calendar next week so bond market moves are likely to set the tome for the FX markets.
The real danger though is in “junk” bonds. As shown in the chart below, Eurozone junk now yields less than US Treasury bonds