Last week we detailed BofA's Michael Hartnett's warning that "The Fed will tighten until something breaks".
Well, something just broke...
SVB's collapse - the second biggest US bank failure in history - dominated any reaction to this morning's mixed bag from the BLS (hotter than expected earnings growth, rising unemployment (especially for Latinos), better than expected payrolls gains).
Things started off badly as SVB crashed 65% in the pre-market before being halted. SVB bonds were puking hard and when the FDIC headline hit, the bonds collapsed further...
Poster Comment: