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Putting Humpty –Dumpty back together - Societe Generale

FXStreet (Guatemala) - Kit Juckes, Global Head of Currency Strategy at Societe Generale explained how yesterday's moves were extraordinary.

Key Quotes:

“Collapsing Treasury yields and a general and indiscriminate reduction in positions (long dollars, short yen, short vol, long credit, and so on)”.

“The most striking was the Treasury move because while we've seen reactions to exogenous shocks before (9/11, LTCM, Lehman) that caused moves as big or bigger, I can't remember an equity-like position-led capitulation like this in the last 30 years."

"Given the nature of the move, the idea that somehow, we pick ourselves up, look at a world where Fed policy is easy for longer (again) and go back any time soon to our old familiar low vol, yield-hunting Nirvana seems as inconceivable as Humpty-Dumpty being put back together."

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