Salient to Investors:

Michael Franzese at ED&F Man Capital Markets said stocks are falling because everyone seems to see panic in the central banks when people thought there would be growth – a reversal of the beginning of the year when people thought higher rates were on the horizon, but there could be a rate cut in Europe.

Ray Remy at Daiwa Capital Markets America said the volatility in stocks and commodities has forced money into Treasuries, and the next leg is to lower yields, perhaps 1.60 percent on the 10-year.

The yield spread between 10-yr Treasuries and similar-maturity TIPS – the break-even rate – fell to as little as 2.38 percent yesterday, the narrowest since November 28, 2012.

Marc Ostwald at Monument Securities said tapering the Fed’s asset purchases seems to be out of the window, especially after NY FRB Dudley’s comments.

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