Market risk aversion is strong, oil prices and gold prices rise 🤔
Oil prices surged 2% and gold spot prices approached $2,000 as news broke that U.S. warships had shot down missiles and drones coming from Yemen, apparently targeting Israel; while bond supplies are flooding and inflation expectations remain high. Under the shadow of a bearish trend, the yield curve continues to steepen, and as markets realize that the era of quantitative easing may indeed be over, the "term premium" - a measure of the "risk buffer" investors charge for holding long-term bonds - is rising. It has been rising in recent months.
