ANDIKA BULLETin 12 AUG 2024

If you took the week off and are just now looking at the mkt, you could be forgiven for being confused and unimpressed... S&P unchanged, rate-cut expectations notably lower, TSY yields up 15bps, and oil surging.

What you missed was a 6% collapse in stocks (and 20bps plunge in TSY yields) on Monday as yen-carry-unwinds wreaked havoc in risk markets with VIX exploding to crisis highs, before vol-sellers piled back in...

Bitcoin also had a wild week only to end approximately unchanged.  Having puked from $62k to $50k, it rebounded all the way back to $62k overnight before tanking again back down to $58K

Finally, amid the carnage of the last week, money market fund total assets soared to a new record high...

A huge $53BN inflow (the most since April - Tax Day) suggests 'real money' market participants are perhaps more than a little nervous as vol-sellers and algos lift the market on very thin volumes.

Happy Monday!

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