Macro Briefing: 9 November 2023

* US airstrike on site in Syria
* US and China finance ministers lay groundwork for Biden-Xi meeting
* China consumer prices fell in October, highlighting risk of deflation
* Will falling Treasury yields keep the Fed hawkish?
* US mortgage rates post biggest one-week drop in over a year
* US crude oil price continues to fall, trading at lowest since July:

Why are yields on some covered-call funds well above the 10-year Treasury rate? The main reasons “are volatility and interest rates,” says Hamilton Reiner, portfolio manager and head of U.S. Equity Derivatives at JP Morgan Asset Management. Morningstar’s asdfasfd explains: the payouts for covered call funs “are determined by a complex mix of expectations for stock market volatility, the inner workings of the options market, changes in interest rates, the nuances of each particular fund’s strategy, and stock dividends… Even as interest rates have been rising, yields on covered-call funds have been falling, largely thanks to declining volatility in the stock market.”

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