Cartoon of the Day: Yuck!

But there’s a really important Macro Strategist out there who currently agrees with our now-cast. His name is Mr. Market. This is how he read yesterday’s US inflation data and the Fed’s hawkish stance: 

1. Post the a white-hot PPI (producer price inflation) report of +3.1% year-over-year growth, UST 10yr tested 3.00% and backed off
2. Post the Fed upping their forecasts for both growth and inflation, UST 10yr Yield re-tested 3.00%... and backed off again 

This shouldn’t surprise anyone who uses our #process the way they should. The top-end of the @Hedgeye Risk Range on the UST 10yr Yield is currently 3.01%. On the #InflationAccelerating news (that the market has been discounting for 9-10 months), bonds were flat.