This Market Is Like Bottles Of Champagne Bursting One After Another

Congratulations to SocGen analyst Sebastien Galy, who has written what is probably the most creative bit of writing you will ever read regarding the bond market

 The main theme remains the same, FI curves are repricing the price of long term money a bit like a car carrying sparkling wine in the 1920s south of France. The road is covered with beautiful platanes, the air is fresh with the scent of lavender and full of the sounds of crickets. The occasional potholes let corks fly loose and  you are left dodging and counting how many bottles are left. The cuvee Le Junk bond is really fizzy, L'emergent already emerged in a mighty pop. The USD should continue its longer term bid, with the occasional position adjustment we saw in EURUSD recently.

This is very colorful, but also apt.

Left and right, lately, we've seen some huge moves in currency, emerging market bonds, junk bonds, and so forth.

Markets mostly remain calm, but the violent moves in some markets should make people wonder what cork will come flying next.

Please follow Money Game on Twitter and Facebook.
Follow Joe Weisenthal on Twitter.
Ask Joe A Question » Tags: Markets | Get Alerts for these topics »

To embed this post, copy the code below and paste into your website or blog.

View the original article here