Investors are bearish growth (global optimism at 6-year low), bullish US decoupling (US equity long at 4-year high, US EPS outlook at 17-year high), and begin to price in a hawkish Fed (cash at 18-month high of 5.1%, gold valuation at 17-year low,
Having failed to sustain above 3.00% yesterday, the lack of immediate and aggressive response from China has hyped risk appetite this morning and sent Treasury yields notably higher - breaking to the highest since May 23rd.
"Central banks have never existed for the greater good... The general belief among average citizens is that the purpose of central banks is to help the economy... It’s a fairy tale that politicians like to encourage."
Angela Merkel has decided to fire Germany’s domestic intelligence chief for questioning her condemnation of far-right protests, pushing her cabinet into another clash over migration toward a showdown, and to another potential government crisis.