International Market Intelligence Morning Briefing

J.P. Morgan warns of a potential tactical reversal in the Momentum factor due to extreme positioning and price levels. Global bond yields continue to rise, with strategists entering tactical long positions in US and European rates to fade cheap valuations.

Key Takeaways

• 1.Momentum factor performance is at high risk of a tactical reversal due to extreme hedge fund positioning (highest since 2018) and overextended price returns (>3z).
• 2.Global bond selloff continues, with US 30Y yields exceeding 5.15% and Japanese Government Bonds (JGBs) hitting new highs on reports of new bond issuance.
• 3.J.P. Morgan Rates Strategists recommend tactically fading cheap bond valuations, entering long positions in 10Y Bunds, 10Y Gilts, and 2Y USTs.

Table of Contents

• MKT INTEL
• Turning to CATALYSTS
• EARNINGS
• POLICY
• OTHER
• IDEA & INSIGHTS - IN BRIEF
• MONETIZATION
• NEW POSITIONING INTEL
• MACRO CATALYSTS THIS WEEK
• CATALYSTS TODAY
• OVERNIGHT RECAP
• POSITIONING INTELLIGENCE
• Weekly Wrap | Momentum in Reverse? Risk of Downside

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