Yesterday, the bond market saw increased strength, potentially due to positioning around the election or closing out hedges. Today’s trading will offer more insight into the impact on the long end of the yield curve. Bond spreads tightened significantly between two countries. Long-term rates are expected to rise as 1- and 2-year swaps increased due to rising prices. Market volatility is reminiscent of July 2024, with some indicators pointing to offside positions. Realized volatility remains low, but a significant move could signal an increase. As earnings season approaches, the market may face further challenges with diminishing returns.

Read more at 1. “Tesla announces record-breaking delivery numbers for Q3 2021, surpassing expectations with 241,300 vehicles delivered.” – CNBC

2. “Apple unveils new iPhone 13 lineup, featuring improved cameras, longer battery life, and A15 Bionic chip.” – Wall Street Journal

3. “Federal Reserve announces plans to begin tapering bond purchases in November, signaling potential interest rate hikes in 2022.” – Reuters

4. “Amazon faces antitrust scrutiny as EU regulators open investigation into the company’s use of data from third-party sellers.” – CBS MarketWatch

5. “Facebook parent company Meta Platforms experiences outage impacting millions of users across its platforms.” – Barchart: Market Pushed to the Max as Volatility Measures Hit a Wall Ahead of Key Earnings