That didn’t go so well.
The bottom line (or at least from where I’m sitting), is this…
“In a word, honest bond yields will knock the stuffings out of the mainstream fairy tale that passes for economic and financial reality.”
This was just the kind of day that makes you dread the rest of the week.
I don’t know, fuck it.
If you’re not talking about the inexorable flattening in the U.S. curve in public settings, well then one wonders what the hell it is you’re saying at the bar when you’re spittin’ game to the waitresses.
The selloff in the long end late last week and accompanying steepening has everyone squarely focused on that oh so scary round number again and yields ticked up a bit more overnight, ensuring that your coworkers will be forced to begrudgingly try and come up with some new factoid about 3% so they can impress their colleagues.
As usual, lots on the docket.
Something tells us this is an underappreciated tail risk, indeed.
Aaaand that’s the week, folks.
Well, that was interesting.
Beleaguered banks, commodities on the come up, golf, the usual…
“Don’t bother arguing with the hard-money gurus about the correct policy course. Just watch the yield curve. The market is smarter than all of us.”
“Understanding the past is crucial to predicting the future. It helps us come to terms with the fact that just as Van Morrison sang “too late to stop now,” we become addicted to debt and low rates without an answer to the question – how do we stop?”