More questions than answers, as per usual.
Do you feel better?
10Y yields rose above 3% again overnight, so I guess Jamie Dimon is getting closer to being “right” all the time.
“And if the money velocity stops declining, and god forbid, even increases, what will happen to the mountain of monetary stimulus that has been administered over the past decade?”
So yeah, cue the mascot minefield meme.
Douglas Adams time.
“Is there any evidence that the microscopic variance between 1.9% and 2.3% inflation on the PCE deflator makes any difference to the performance and prosperity of the main street economy?”
“In that environment, convexity withdrawal creates a reinforcing loop where more turbulence in risk assets tends to cause stability in fixed income.”
Ok, well all eyes will be on the U.S. in the week ahead.
This was just the kind of day that makes you dread the rest of the week.
I don’t know, fuck it.
Something tells us this is an underappreciated tail risk, indeed.
Got all of that?
Well, that was interesting.