RBC: Welcome To "The Insanity Loop"

"It's a classic 'pennies in front of a stream-roller' / 'negative skew' return profile - a Taleb distribution...The problem is….IT KEEPS WORKING, because market expectations for rates / curves / inflation expectations remain D.O.A., which perversely keeps the major global central banks 'reflexively easy'..."

Stronger Than Expected 2 Year Auction, Thanks To Highest Yield Since October 2008

After today's very ugly 4-Week Bill auction, moments ago the bond market redeemed itself somewhat when it sold $29.1BN (including $3.1BN in SOMA) in 2 Year paper. The high yield of 1.316% stopped through the 1.322% When Issued by 0.6 bps, which was the biggest "stop through" since last August. Perhaps the yield was a factor: at just below 1.32%, this was the highest auction stop on 2Y paper since October 2008.

Picturing The Death Of European Fear

The number of futures betting on euro-area equity turbulence crashed 44% from a record following last week’s expiration, as it appears Emmaniel Macron's victory has seemingly saved the world...

From America Worst To America First In One Presidency

President Donald Trump’s Sunday address in Saudi Arabia was bound to inspire comparisons to the speech Barack Obama delivered in Cairo, Egypt at a similar point in his young presidency. But the 45th U.S. President quickly made clear that he did not fly to the Middle East on his first overseas trip in order to explain what’s wrong with America...

Trader "Appalled" At Market Reaction To Manchester Bombing "There's More To Life Than Next Few Basis Points"

"...the market reaction to the bombing in Manchester was appalling. And an indictment of a system that rewards, time and again, through official reaction functions, utter callousness and obliviousness to events... Look around you. It’s high time central bankers, politicians and, even, investors realized that there’s more to the world than the next few basis points."

Cost Of Universal Healthcare In California: A Mere 2x The State's Entire Annual Budget

Back in February, a gaggle of California Senators introduced Senate Bill 562, a publicly funded universal healthcare system otherwise conveniently marketed as "The Healthy California Act"...because who in their right mind would oppose Californians being healthy?  Presumably "The California Single-Payer Healthcare System, Courtesy of A Back-Breaking $400 Billion Tax, Act" was passed over because the truth isn't quite so 'marketable' in this particular case.

Cable Spikes As Germany Warns Brits "Will Learn Brexit Was A Mistake"

As Britain digs itself out from last night's disgusting terrost attack, amid the cessation of election campaigning, the Europeans are unafraid to step up the rhetoric, with German finmin Schaeuble exclaiming "the British will learn Brexit was a mistake." Sterling spiked on the threat...

Mnuchin Comments On Trump's "Historic" Budget Proposal: "It Will Prevent Taxpayer Bailouts"

In a statement issued moments ago discussing Trump's proposed, if completely impossible, budget proposal, Treasury Secretary Steven Mnuchin said that Trump's "budget will achieve savings through reforms that prevent taxpayer bailouts and reverse burdensome regulations that have been harmful to small businesses and American workers." Translation: taxpayer bailouts are imminent, especially now that the current economic cycle is the 3rd longest of all time and a recession grows likelier with every passing day.

Europe's Blinkered Leaders: Shielding Themselves From Reality Again

When the G7 heads of state arrive in Taormina, Sicily, for the G7 meeting on May 26, they will find themselves in an embellished, picture-postcard version of European reality. Italy, the host of the G7 meeting, has announced that it will close all harbors on the island to ships that arrive with migrants ( mainly from Libya) for the duration of the two-day meeting.