Tech-led selloff underway
US 10-year yields are up 7.5 bps to 1.61%. They had dipped as low as 1.58% in the past hour but have begun moving higher again.
The stock market is far from uniform as the divergence in tech and value continues. Nasdaq futures are almost 2% lower while Russell 2000 futures are fractionally higher. S&P 500 futures are down a modest 14 points after yesterday’s 40 point gain.
This has the feeling of a day when the bond market is in charge and there’s plenty of hand-writing about repo rates but that should sort itself out when this week’s 10-year sale settles on Monday. Beyond that, the worries about the SLR. It’s clear to me the Fed isn’t going to extend the waiver and that presents a risk for Wednesday’s FOMC.
Here’s some background on the SLR from TD: