Stocks exuberantly rallied on the ‘hype’ that the world is safe again and America’s latest intervention is one-and-done… but bonds ain’t buying it…

The curve tested Friday’s highs then crashed back down its flattest levels since Oct 2007…

Someone is ‘wrong’ again!

As Eric Peters anecdotally summed up over the weekend…

“We have this global synchronized recovery, massive tax cuts, rising budgets, hurricane rebuilding projects, and record corporate profits,” he said.

“We have $70 oil, record low unemployment in the US, Germany and Japan.”

I nodded.

“We have the 2nd longest economic expansion and one of history’s greatest bull markets in US stocks.”

Indeed, it’s true, if America avoids a recession for another year, it’ll be the longest expansion since before the Civil War.

“Inflation is rising, core, headline.”

Yup.

“So why can’t 10yr bond yields surpass 3%?”

Why indeed?!!