Salient to Investors:

Ethan Anderson at Rehmann Financial said investors have been shaken by the concept of rising interest rates, a reduction in Fed stimulus, and uncertainty about the Chinese central banking system.

Goldman Sachs cut its 2013 forecast for China’s economy and said the cash squeeze is hurting growth.

Vasu Menon at OCBC Bank said China has had a credit binge for way too long , and government rebalancing the economy and trying to downsize the shadow banking system means credit will remain fairly tight.

Aluminum is having its longest slump since at least 1987. Copper is the lowest since July 21, 2010, and aluminum is the lowest since July 2009. Goldman Sachs lowered its gold price forecasts through 2014 in anticipation of reduced Fed QE.

10-yr T-yields extended the biggest weekly increase in a decade, yield on Australia’s 10-yr government bond reached the highest since April 2012. Germany’s 10-year bund yield reached the highest since March 2012. UK 10-yr yields reached the highest in almost 20 months, and Switzerland’s 10-yr rate exceeded 1 percent for the first time since Oct. 31, 2011.

Rainer Guntermann at Commerzbank said the market remains anxious that Fed exit policy will be painful for bonds, and there is little sign of stabilization.

William C. Dudley at FRB of New York said the biggest lesson of the financial crisis has been that monetary policy cannot work properly when there is financial instability.

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