Just as we warned earlier in the week, the macro playbook has shifted to "bad is bad and good is good" as 'growth scare' narratives now dominate the set-in-stone rate-cut scenarios.

This morning's payrolls data was 'bad news' and so we see rate-cut expectations explode higher with over four full cuts now priced in for 2024...

This prompted a massive plunge in Treasury bond yields...

...especially at the short-end with 2Y yields dropping a stunning 29bps, back below 4.00%)...

...but stocks don't like the 'not-soft-landing' narrative...

But gold extended the week's gains (as the dollar dovishly limped lower)...

How long before FedSpeak will drift dovish and adjust to the market's new narrative (remember The Fed 'DOTS' are still at 2 cuts in 2024).

...four full rate-cuts now priced in for 2024
{ai:summary}The financial landscape has shifted; bad news is now triggering rate-cut expectations, sending Treasury bond yields plummeting and stocks into a tailspin. The market is betting heavily on four cuts by the Fed in 2024, while gold gains traction amidst a weakening dollar.As the narrative of a hard landing takes hold, the chorus for a dovish Fed grows louder, even as crude oil prices tumble. The economic chess pieces are in play, and it's a tense game with uncertain stakes. 
#economy

Stocks, Crude, & Bond Yields Plunge As 'Growth Scare' Sparks Surge In Rate-Cut Hopes

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