Bond Yields Fall and US Banks Under Pressure

Gold Spot Price $AU3504

Silver Spot Price $AU44.56

Platinum Spot Free $AU1508         

63 US Banks are now under additional pressure as outlined in the FDIC latest quarterly banking profile. With collective unrealised losses totalling 517B, the banking sector is again looking extremely stressed. This quarterly report is the 9th consecutive where unrealised losses have increased. With a higher chance of insolvency, Bank Watchdogs are on high alert.

And bond yields have started falling again, though this time it is not being seen as positive to the economy. With rates on Government debt falling for the fourth straight session on Tuesday, this could well be the signal we’ve been waiting for to start unwinding the current monetary tightening period. 

To reinforce the idea that the economy might need help sooner rather than later, job openings fell to 8.1M for the month of May well below economists expectations for the period.

So with ongoing debate over the stickiness of inflation, the need for higher rates for longer and a stalling economy - we’re all feeling like we’re in a plane that has run out of fuel, broken its landing gear and is trying to land safely with a lot of people on board.

Next week we’ll have more information around CPI from the US, which will help frame future FED decisions.

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

Not financial advice, please do your own research prior to any investment decisions you make.