James Brodie
Head of Learning & Development, Flux
Bond Pressures Ease, Delta CEO Says AI To Boost Profits by 50%, Rice Surges
30Y eases pre-Warsh; Fed holds $540B of 10-15Y debt raising buyer questions; AI dynamic pricing spreads; uranium breaks out; Aussie CPI hot.
Bond pressures ease with 30-year 7bp lower on the day and looking to have formed a short term top.
The bond markets will now focus intently on Fed chairman Warsh’s Jackson Hole speech on Friday.
The Options Market May Add Fuel To Gold’s Fire (Bloomberg, Goldman Sachs)
Free markets! LOL….. The Fed owns more than HALF of Treasuries maturing in 10–15 years.
Of the roughly $1.03 trillion outstanding in this maturity bucket, the Federal Reserve holds around $540 billion. The Fed still owns roughly $1.6 trillion of Treasuries with 10+ years to maturity.
That means a massive amount of duration remains outside private investors’ hands. But as the Fed’s portfolio gradually shrinks, someone else must absorb that supply. And unlike the Fed, private investors care about price. So the key question isn’t just how much debt Washington will issue. It’s who will buy it - and at what yield?
Delta's CEO said AI will boost profits by 50% by setting a different ticket price for every passenger in real time. The airline uses an AI system called Fetcherr that generates a unique price for each shopping request…… Walmart is now looking onto this aswell…. Inflationary.
Big oil has its best quarter ever (Bloomberg)
Uranium is breaking out of a five-month consolidation as UBS warns the market is structurally tightening - with data centre power demand emerging as a key long-term catalyst.
Rice prices have SURGED by over 45% in the past 6 months.
Nvidia finally bounces after 7 straight down days. Earnings report is next week.
Australian inflation comes in significantly hotter than expected: Headline: 3.5% YoY vs 3.3% exp. RBA September rate hike pricing now at 36% from 12% yesterday, as their housing market is already falling hard.
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