Rising yields still weighing on investor sentiment. OpenAI just solved 81% of math discoveries in 1 day (of last 3 years) using very little compute.

Equity markets took a breather today, in part due to the continued rise in long-term yields. The US 10-year touched 5.30% today and 30-year 5.69%.

The relentless rise in yields naturally concern investors because multiple drivers could explain this. But we should also be aware, that investor dynamics are increasingly at play:- there are record commercial shorts of bonds (pushing up yields)- short bonds, long equities is asymmetric- if yields fall, stocks would rise- but the "short bonds" wo...

Equity markets took a breather today, in part due to the continued rise in long-term yields. The US 10-year touched 5.30% today and 30-year 5.69%.

The relentless rise in yields naturally concern investors because multiple drivers could explain this. But we should also be aware, that investor dynamics are increasingly at play:- there are record commercial shorts of bonds (pushing up yields)- short bonds, long equities is asymmetric- if yields fall, stocks would rise- but the "short bonds" wo...
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