Bond Volatility Technicals Post Expiry and Tech Allocations

The report highlights extreme misses in Chinese economic data and a surge in global bond volatility and rates as key risks. It notes that levered semiconductor demand has reached potentially unstable record levels in Asia and the US.

Key Takeaways

• 1.Chinese economic data (industrial production, retail sales) missed expectations by an unprecedented magnitude, signaling potential demand destruction.
• 2.Levered Semiconductor AUM has nearly doubled in the last 1.5 months, creating significant 'shadow gamma' and retail-driven risk.
• 3.Rates are breaking out globally with a surge in long bond implied volatility, suggesting a 'late cycle tightening' environment.

Table of Contents

• Energy
• China Data
• Technicals
• Risk

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial