Jay ‘Behind-The-Curve’ Powell, And Why The Fed May Have To Start ‘Outright QE’

"[The] US yield curve keeps flattening despite risk-on [and] trade relief", Nordea's Martin Enlund remarked on Tuesday, shortly after simultaneous statements from the USTR and China's Ministry of Commerce ignited a rally in the yuan and US equities. We noted the same thing pretty much immediately. Although the news pushed long-end yields higher, the 2-year cheapened by 7bps and the 2s10s was on the brink of inverting. (It didn't help that 10-year yields came off the highs as Hong Kong police do