QUICK EXPLANATION OF MARKET REACTION

Just a little play-by-play from the 'tourist as today's action is all over the map

Lots of crazy things happening in the markets, so I thought it would be instructive to walk through what I believe is happening.

As discussed in yesterday’s piece, the Fed brought rate hikes forward with their FOMC meeting.

This resulted in massive selling of the “belly of the curve”. This means the 5-year area.

Here is the chart of the US 5-year treasury…