Normally, the first Friday of the month is a day where everyone on Wall Street is freaking out about the latest jobs report.  After yesterday’s tweetstorm by the President, though, jobs have taken a back seat.

Global markets are still reeling in the aftermath of the President’s new round of tariffs scheduled to take effect on 9/1.  Interest rates around the world are plunging, stock markets have taken hits squarely on the chin, and the President’s attempt to jolt markets (thereby forcing the Fed’s hand into rate cuts) has continued.

The US equity market is set to open 35 bps lower despite a small rally off session lows, the Treasury curve is aggressively bull flattening as longer-term bonds price in risks of a recession while the front end prices a slightly easier Fed, and the dollar declines modestly.

Continue reading in today’s Morning Lineup.

Bespoke Morning Lineup – 8/2/19