It is markets like this that make me wish that I was sitting in the lounge at the Cap Ducal hotel in Valparaiso Chile staring off at the Pacific Ocean.

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Except that my Spanish is so bad they a war would probably ensue.

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.

My bet is on Williams’ announcement of economic optimism and the likelihood of further rate hikes.

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And the Treasury 10Y-2Y curve flattened further to 10 BPS.

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Is Jerry Gergich running The Federal Reserve? 

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