Dear Market, I Think Janet Yellen Broke Up With You Last Week

"Now what has happened in the real world to accelerate the Fed’s tightening agenda, and more to the point, a specific form of tightening that impacts markets more directly than any sort of interest rate hike? What has happened is that the Fed’s reaction function has flipped 180 degrees since the Trump election."

Schaeuble: "The Britons Were Endlessly Lied To And Deceived" On Brexit

Schaeuble said that British people were "endlessly lied to and deceived" in last year's Brexit referendum campaign. The finance minister, speaking on the first anniversary of the Brexit vote, was scathing about the "leave" campaigners who persuaded a majority of voters to opt to quit the European Union.

RBC: The Next Pain Trade Is Coming In 1-3 Months

It’s pretty simple folks - Chinese liquidity injections / “looser” financial conditions = relief rally in Chinese industrial metals on the WTD, which is an ‘inflation expectations’ tailwind.

New Home Sales Rebound From April Collapse As Median Price Hits All Time High

Following the modest bounce in existing home sales (and disappointment in starts and permits), new home sales bounced in May to 610k (after plunging 11.4% in April, now revised to a 7.9% drop). Of particular note is that median new home prices surged to $345,800 - an all-time record high, with the biggest 3-month spike since Jan 2011.

US PMIs Tumble To 9-Month Lows, Catching Down To Collapse In 'Hard' Data

Following disappointment from China last week, and Europe this morning, US PMIs (both manufacturing and services) dropped and disappointed as it appears the lagged impact of China's slumping credit impulse are finally hitting the world's economies. With 'hard' data collapsing to 13 month lows, it is not surprising that 'soft' survey data is finally catching down with Manufacturing at 8-month lows.

BofA: "Central Banks Are Now In A Desperate Dilemma"..."Start Buying Volatility"

"Central banks, the reason behind high asset prices and low vol, are now in desperate dilemma: politically unacceptable for bubble on Wall St, but central banks will be tightening into deflation; inflection point for volatility is upon us and we recommend investors buy volatility....Fed tightening in 2017 could easily be followed by easing in 2018, in our view."