Tumbling Yields

I close my eyes
Oh God, I think I'm falling
--Madonna

Japan's announcement last night that it is joining the negative interest rate policy (NIRP) club finds sovereign yields tumbling lower this morning. That few economists saw this coming demonstrates how clueless this group as a whole is.

T-note yields have gapped below 2%.

Leverage chasing lower yields. A mighty dangerous thing.

position in SPX