Out of the approximately 4,000 banks in the United States, it seems like JP Morgan is the only bank from this top 4 banks we are seeing here that has climbed back up from the March banking crisis. The rest are still well below their March levels. What about the other thousands of banks?
Is inflation fear over?
We observed an improvement in the CPI numbers, which reached 3% recently. However, the PCE number is what the Fed is concerned with, as it is still hovering around its high point.
The banking crisis in March was triggered by rising interest rates, and the long term yield or interest rate trend suggesting more upside to come.
How can you determine if the fear of inflation still lingers and is leading to further interest rate hikes? One indicator is an inverted yield curve, where the shorter-term or 2-year yield is higher than that of the 30-year government bonds. Take a look at the following chart.
The upper window represents the cash market, which is not tradeable. The lower window represents the futures market, where we can use it to hedge and trade.
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
Is inflation fear over?
We observed an improvement in the CPI numbers, which reached 3% recently. However, the PCE number is what the Fed is concerned with, as it is still hovering around its high point.
The banking crisis in March was triggered by rising interest rates, and the long term yield or interest rate trend suggesting more upside to come.
How can you determine if the fear of inflation still lingers and is leading to further interest rate hikes? One indicator is an inverted yield curve, where the shorter-term or 2-year yield is higher than that of the 30-year government bonds. Take a look at the following chart.
The upper window represents the cash market, which is not tradeable. The lower window represents the futures market, where we can use it to hedge and trade.
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
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