Morning Call Sheet: SpaceX fever rises as markets eye rates and risk

Summary

The panel discusses how oil oversupply caps crude prices despite geopolitical tensions, warning that a break above 4.6% in the 10-year yield could hurt equities. Bonds are range-bound with no clear trade, while the upcoming space IPO is viewed as overhyped and likely to be volatile.

• Oil oversupply prevents a rally above $100, and downside is seen as likely despite geopolitical tail risk.
• Cost-push inflation limits the Fed's ability to act effectively on prices.
• The 10-year Treasury yield at 4.6% is a key level to watch; a breakout could spell near-term trouble for equities.
• Bonds are stuck in a narrow range (110-114), offering no trade until a clear breakout or breakdown.
• The space IPO is expected to gap higher then pull back sharply, with extreme volatility anticipated.
• Tesla was briefly noted as down year-to-date amid speculation of a future merger with its sister company.