September 2020 Macro Markets Blog Post
Recap Hi all, and thank you for tuning into the September update from MacroSquawk. If you were able to read the previous month's update, I think it is going to be indicative of the kind of environment we will be in at least until the US elections. Outside of the steepener trade on TY 10s30s I had written about, markets have been quiet through the August summer session period. Now that we've got Jackson Hole out of the way, that might start to change, which will be the subject of this blog post. Macro Thesis I think that in the current environment, a lot of the early positive news from the reopening story has been played out. Inflation from aggregate demand is going to be harder to come by, especially as we get into the winter season with fears of a resurgence and with news of possible reinfections. The saving grace might be the monetary inflation from dollar weakness as a result of the Fed's guidance at Jackson Hole. In this vein, I see the macro environment be...