Bond market on verge of tripping a signal that could lead to sharp sell-off

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MarketWatch’s call of the day comes from the Leuthold Group, a Minneapolis investment research firm, which tracks the correlation between weekly percentage...

All the U.S. stock market seemingly does is set records, so let’s take a look at the world of bonds, where the bulls have been blasting yields lower.

But what would a peak in correlation mean for stocks? Apparently little, according to the Leuthold analysis — “the bias has been for somewhat below-average equity returns in the 4-week, 13-week, and 52-week periods following a definitive correlation peak.” Gold GCQ19, -0.13% rose $2.30 to $1,415.80 an ounce, oil CL.1, +0.07% fell 4 cents to $59.54 a barrel and the dollar DXY, +0.37% rose 0.3%.

Mnuchin made quite a bit of news at that rare White House press briefing, saying that they’re getting closer to raising the debt ceiling and that he and U.S. Trade Representative Robert Lighthizer may travel to Beijing for trade talks if phone conversations prove fruitful. On the economic front, retail sales for June jumped 0.4%, or a gain of 0.7% excluding autos and gas. Import prices plunged, while industrial production data is due at 9:15 a.m. Eastern. A number of Federal Reserve officials, including Chairman Jerome Powell, are due to speak.Apollo 11 U.S. Customs form after first moon landing by astronauts, 50 years ago: pic.twitter.com/ARYxgg07pk

 

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