10Y dollar S&P 500

“Our Animal Spirits Have Been Shot By Poachers”

"It’s not so much whether the Fed minutes were a damp squib, the media round by the Treasury Secretary was underwhelming or we were once again reminded of European political risk"...

Ok, finally. Leave it Bloomberg's Richard Breslow to sum up a few of the points I've been keen on driving home since the Fed Minutes hit on Wednesday afternoon. As noted on Thursday evening, the Minutes effectively short-circuited the whole hawkish mindset the had become firmly entrenched since Janet Yellen's testimony on Capitol Hill. Treasury Secretary Mnuchin's comments on fiscal stimulus timing only served to further undermine the reflation narrative. Earlier this week, I noted that Breslow "didn't see what you were so damn punchy about." Well, a few days later and no one's feeling very punchy. In fact, our "animal spirits have been poached." More below. Via Bloomberg's Richard Breslow The first thing someone said to me this morning was “Thank God It’s Friday”. A throwaway line to be sure, but given the events of the past week, I got the sense that it was meant sincerely. I was about to agree when it occurred to me that, what I really wanted, was to demand a re-do. Safe-haven assets are going out bid, even while broader, lower-for-longer, activist central-bank markets remain remarkably sanguine. Buying safe assets as a hedge for the reach for yield is the unhealth
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