Just as it was beginning to look like the bond market’s luck was finally running out, President Trump made some remarks that all but guarantee that the bond rally will go on for a little while longer.
The idea of the long-run bull market in US bonds has been put into question by the markets’ reaction after Friday’s strong jobs report.
“Equity vigilantes” may be trying to push the S&P 500 lower in the coming weeks just to force the Federal Reserve to stay dovish, analysts at Bank of America Merrill Lynch have warned in their most recent report on capital flows.
The data shows that money left US equities for the fourth straight week, with outflows totalling $3.3 billion last week.
The US dollar was the main winner from a disappointing news conference by European Central Bank President (ECB) Mario Draghi, and it may strengthen even further.