So when it looked like the last, lonely U.S. reflationist was about to throw in the towel, it felt like everyone was suddenly scrambling around to explain why yields were too low – maybe in an attempt to appease the market Gods who are thought to dislike crowded trades.
Ok, get ready.
For now, the fiscal-chaos-can has been kicked, Harvey is behind us, and North Korea’s latest nuclear test has come and gone.
But dead ahead is Irma’s landfall in Florida, North Korea’s “founding day” (which by most accounts will be “celebrated” with an ICBM launch), and of course, more gridlock in D.C. We are, figuratively and literally, in the eye of the storm on Friday.
The bottom line is that between another powerful hurricane approaching the U.S. mainland, U.S. markets catching up with their global counterparts in terms of pricing in North Korea after the long weekend, the DACA decision which portends more bickering in Washington, and the looming debt ceiling debate (with the specter of a technical default showing up in today’s decidedly poor 4-week bill auction), it was death by a thousand cuts.
Well, now that Hurricane Irma has become a Category 5 storm and remains on track to make landfall in the U.S. later this week, folks are getting worried about the impact it could have on crops.
And nowhere is that more apparent than in frozen orange juice futures…