The bond market just doubled its bet that the Fed is behind the curve
The 2-year yield now sits ~59 bps above the fed funds ceiling (nearly double late June levels) and CME FedWatch has September hike odds at ~80%, up from 53% a week ago. Oil is back toward $100 on renewed Hormuz pressure. And Big Tech’s early Q2 prints reopened the AI-capex questions we flagged in #29. Nasdaq took the hit while non-US and EM held up.
Bullish calls feel premature here, as both policy and geopolitical tails widened in the same week.
Dìonglic modelled no changes. the real-yield channel continues to validate the zero gold/Bitcoin stance and the 40% cash optionality.
Full weekly update (Focus Area on the front-end gap, distribution shift, and what Thursday’s FOMC + PCE could do to it) is live:
wosscapital.substack.com/p/3…
Enjoy and as always, share if useful.
—WoSS