Atlanta Fed GDPNow Q2 At -34.7% QoQ, M2 Stock Soaring, M2 Velocity Likely To Be A Disaster (Fed Buying German Automaker Bonds)

More like Constitution Avenue Freeze Out.

US Q2 GDP will be released on July 30th. At that time, M2 Money Velocity will be officially released (Nominal GDP / M2 Money Stock).

Let’s see where are today. The Federal Reserve is printing money at a rate of 25% YoY. Meanwhile, the Atlanta Fed GDPNow forecast for Q2 is -34.7% QoQ. This will be the WORST M2 velocity is history.

Even worse, the 10 year Treasury yield is near its all time low (orange box). Meaning that mortgage rates are near their all-time low as well.

Meanwhile, The Federal Reserve is merrily purchasing corporate bonds … with the largest two of the top four purchases being German automakers, Volkswagen and Daimler (Mercedes). Japanese auto maker Toyota is at 6th and German automaker BMW is at 8th.

Negative M2 velocity and The Fed buying foreign bonds? Add in Joe Biden’s Federal spending wish list of over $10 TRILLION …

What you say, Janet (Yellen) darling?

The Night Before: US Equities Down 1%, Oil Down 2%, Gold Up 1% (Coronavirus Fear Again)

It is the night before Monday opening.

And it is ugly.

The Dow Jones mini is down 346 points as of 7:30pm EST on Sunday evening.

wefdd

Bond market futures are up, meaning yields are down.

wbmf

Oil futures are down 2.55%.  And GOLD is up 1%!

wcommod

Yes, it is the coronavirus impact global supply chains.

Screen Shot 2020-02-23 at 4.53.36 PM

Or it was Tyson Fury licking Deontay Wilder’s neck in their rematch fight on Saturday night.

fury