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Did The Market Misread The Most Important Event Of The Week?

So we got a hawkish Yellen on Capitol Hill.

Or did we?

The market certainly seemed to think so. Rates and the dollar spiked hard when the Fed Chair’s prepared comments hit the wires on Tuesday morning. 468 more words

10Y

The Week That Was: "The Hardest Thing To Do Is Justify Hedging"

Well, it’s been one hell of a week.

We started on a sugar high thanks to last week’s impromptu “phenomenal” tax plan “announcement” and the reflation narrative got another boost thanks to an “unexpectedly” hawkish Yellen on Capitol Hill and a CPI number that blew the roof off. 1,079 more words

Trump

Turns Out SOMA Rolloff May Not Help Fed Appease Renowned FX Strategist Donald Trump

Right, so one guy that’s contributing to Fed policy paralysis wears a furry, yellow animal on his head, spray paints his face orange (except for around the eyes), and talks only in superlatives. 539 more words

Trump

Here Comes The Next "Tantrum"

I’m always warning about VaR shocks.

More specifically, I like to remind investors that in the event rates reprice sharply higher, the return correlation between stocks and bonds could well flip positive as… 161 more words

10Y

"Buridan’s Ass, Meet Scylla And Charybdis"

As I noted earlier on Friday, this week provided nothing in the way of clarity for markets that are strugglingly mightily to make sense of looming political and policy risks. 516 more words

10Y

A French Kiss Leaves Global Risk Queasy On Friday

If you were looking for clarity with regard to President Donald Trump’s policies or for any kind of sign that the administration is actually running more smoothly than outward appearances suggest, you most certainly did… 807 more words

10Y

"Tortured Traders" And Uncertainty: One Trader Weighs In On Spooked Markets

I’ve talked  exhaustively about how markets aren’t really good at what they’re supposed to be good at.

That is, markets are supposed to be discounting mechanisms, but in reality, that’s a misnomer. 711 more words

10Y