Stocks and the precious metals slumped today as yields on US Treasuries climbed. The ten year Treasury yield finished at the highest level since 2011.

This in turn greatly strengthened the US Dollar. Bloomberg characterized this as a ‘risk off' reaction to something or other that was not clear. North Korea or Jerusalem? The VIX took a leg higher.

The retail sales number was rather weak, which would not support higher interest rates per se.  Although there was an upward revision last month, and Empire Manufacturing did come in a big stronger. All in all a zzzzzz.

The SP 500 yield has fallen below the 3 month Treasury yield. And this is just the market to buy stocks for clipping coupons, right? lol.

Perhaps the market has decided that the Fed will be raising rates no matter what the productive economy is doing, which is not all that bad of a bet. Unless there is an economic cataclysm. The Fed seems to be self-absorbed and self-referential to a remarkable degree, having painted themselves into a corner with few places left to hide.

I suspect that gold was in an over-reaction. Many punters have noticed gold's tendency to bottom off the NFP-FOMC combination, and probably placed too many weak bets ahead of the curve. Well, that is one possibility at least.

Or maybe the masters of the universe were just having a day. Anything is possible when bullshit reigns.

I just checked and there it is, a stock option expiry this week. The calendar included below. May is not normally that big of a month for stock options as I recall.

Bullshit and faithlessness reign in our amoral wilderness.And you-know-who is the King of the May.