The massive beat in the payrolls print has removed any hopes of a Fed Pivot and sent rate-hike expectations soaring…
With the odds of a 75bps hike in September now topping 70% once again…
All of which stole the jam out of the market’s bullish donut with stocks plunging…
Bond yields spiking with the short-end getting battered (2Y +16bps)…
The yield curve is flattening aggressively – 2s10s now at its most inverted since Aug 2000…
And gold tumbling…
But the dollar is bid…
Is Mr. Powell re-writing his J-Hole speech already? And all those hawkish Fed Speakers this week are suddenly being listened to…