Companies added fewer workers than projected in February according to this morning’s ADP report. Emerging-market stocks rose for a second day while Europe and U.S. equities were little changed. Stocks rebounded yesterday after Putin said there was no immediate need to invade eastern Ukraine.
Let’s see. Manufacturing in the world’s biggest economy ground to a halt in January. The benchmark Treasury yields is at its lowest in three months and stock indexes can’t hold onto earlier signs of a rally. So then that likely puts the CBOE Volatility Index at a sky high reading of 20.0.
The shift in implied yields has probably gathered steam as a result of liquidation and/or the perceived notion that bigger investment houses carrying a lot of clout are having a positional rethink about the Fed.