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Andreas Steno Larsen states that the market is undergoing a shift from concerns over a recession to fears of an inflation shock. He points to rising 10-year bond yields, surging bond volatility, increasing inflation expectations, and a move in Federal Reserve pricing from expectations of rate cuts toward possible hikes.
This follows a thread previously posted by Steno Larsen, providing further analysis on these recent market developments.
Steno Larsen's observations come amid heightened attention to shifting sentiment in financial markets, where public statements often provide limited value for true contrarian analysis—a point he explored in his examination of contrarian signals in market commentary. Recent volatility in rates and commodities also recalls his reporting on sharp movements in energy markets, including the decline in U.S. oil prices, which continues to inform the broader discussion around inflation risks.