Much different to last weekend, this weekend’s risk felt much more skewed to the upside, according to top Goldman Sachs FICC trader, Shawn Tuteja.
Friday’s rally felt like the trading community did not want to be offsides into potentially positive newsflow over the weekend (e.g. a positive US / China conversation or a deal with Japan that removes auto-tariffs). It feels that consensus is firmly shaping into the view that it’s necessary to separate a short-term view on markets from a medium-term one.
In the short-term, this past week removed the extreme left tail to the markets, as the government showed some sign of relent after SPX traded below 5000 and back-end bonds were bidless.
