Bond market doesn't like new Japanese PM use of fiscal stimulus: National Alliance's Andy Brenner

Market Trends & Analysis - The Japanese 30-year bond yield increased by 14 basis points, reaching levels not seen since 1999, indicating a negative sentiment towards fiscal stimulus [2] - The market anticipates two Federal Reserve meetings with expected rate cuts of 25 basis points each [4] - The yield curve is expected to widen from top to bottom, becoming more of a standard yield curve [5] Investment Strategy - The firm suggests focusing on the shorter end of the bond spectrum to capitalize on the slowing job market [5] - Investment-grade corporates are viewed favorably, yielding approximately 725-750 basis points (725-750%) year-to-date [9] - The firm is looking for another potential increase of 25 basis points in yield across 10-year and 30-year rates in the US [3] Economic Outlook - The US economy is described as potentially "jobless" but still booming, suggesting limited reasons to buy duration [2] - Companies are showing hesitancy in hiring due to concerns about the impact of AI on employment needs [9] - Despite mixed economic signals from surveys like Rella and ADP, the firm believes a decent understanding of the economy can be gleaned from available data [7][8]