Dollar Libor and Treasury bill rates are the highest since 2008.
Does this signal a retreat in U.S. debt market?
Corporate bond ETFs have suffered outflows, but it’s just a drop in the ocean.
Investors yanked nearly $4 billion from the QQQ fund.
SPY took a $8 billion hit on Tuesday.
Investors spooked by higher U.S. borrowing costs are paring exposure to these two areas.
U.S. corporate debt ETFs have bled a near-historic sum of assets over the past two weeks.
The relentless buying exemplifies "asset overshoot risk,” says BofA.
Its forecast that the difference between short and long yields will narrow to zero late next year is spurring strong push back.
Strategists know their year-end outlooks could come back to haunt them.