Paper Alfa - Macro & More

Paper Alfa - Macro & More

Share this post

Paper Alfa - Macro & More
Paper Alfa - Macro & More
De-Synchronisation Theme?
Copy link
Facebook
Email
Notes
More

De-Synchronisation Theme?

When the waiting for the Fed ends

Paper Alfa's avatar
Paper Alfa
Apr 15, 2024
∙ Paid
12

Share this post

Paper Alfa - Macro & More
Paper Alfa - Macro & More
De-Synchronisation Theme?
Copy link
Facebook
Email
Notes
More
1
1
Share

I briefly mentioned the evolution of the new theme of de-synchronisation in this week’s ATW. See below.

Attack the Week (ATW)

Paper Alfa
·
April 14, 2024
Attack the Week (ATW)

Sunday Thoughts The events over the weekend involved a first-ever direct Iranian attack on Israel involving drones and missiles. A lot of speculation and extrapolation of events is already taking place, which I am sure you can read tons about in Fintwit. I am no geopolitical analyst, and I am well aware of my limitations in calling any possible outcome to this situation.

Read full story

While everyone was waiting for the Fed to open the door to the coordinated policy easing, recent data and a sharp repricing of front-ends put a sharp stop to that strategy. Some central bankers are now forced to consider steering policy away from the Fed’s autopilot reaction function. We have already heard the ECB opine that it wants to diverge itself from the Fed’s actions. The USD took obviously notice with plenty of markets now at key levels where a new bearish trend could materialise.

The relative change over the past 3 months in G-10 STIR rates has opened the spectre for spreads to follow a less synchronised pattern from here.

Source: Paper Alfa Engine Room

Let’s explore this in more detail. I will also outline how I think about playing it from here.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Paper Alfa
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More