Filter by Categories
Watch Series
The Great Game
Daily Post
Steno Signals
Free sample
Emerging Markets
Video

Steno Signals #50 – Singing Hallelujah while sleeping at the wheel!

AI is mana sent from heaven, while McCarthy and Biden have allegedly agreed on a debt ceiling deal. We continue to favor positions with a positive beta to slowing inflation despite the recent concerns around stickier for longer.
2023-05-28

Sing Hallelujah!

Biden and McCarthy have allegedly agreed on the principles for a 2-year debt ceiling deal, which could prevent the US government from a forced shutdown early next week. We now know that USD liquidity will dwindle in coming months as 1) The TGA cannot drop further, 2) QT is still running and 3) the FDIC may repay further emergency loans on behalf of banks

The “fuel” from a depletion of the TGA is hence no longer a thing as of this week, which is likely going to test risk appetite in markets and lead to further tailwinds for the USD.

Chart 1: The TGA is practically empty – time to rebuild


A debt ceiling deal is not necessarily good news for equities on an equal-weighted index level.

Want to know why? Find out more with a 2-week FREE trial below.

AI is mana sent from heaven, while McCarthy and Biden have allegedly agreed on a debt ceiling deal. We continue to favor positions with a positive beta to slowing inflation despite the recent concerns around stickier for longer.
To read the full article, sign up for a 14-day FREE trial of the Basic, Premium or Crypto plan.

0 Comments