The Dow crashed 800 points today, most after noon.
Which is it? The fear that the Trump-Xie tariff truce is a big nothing burger? Or that NY Fed President came out after noon saying that inflation and jobs look good and isn’t worried that markets have dialed back ’19 hikes? Or both?
My bet is on Williams’ announcement of economic optimism and the likelihood of further rate hikes.
And the Treasury 10Y-2Y curve flattened further to 10 BPS.
And the 90-day Treasury bill yield keeps on smokin!