If you went to bed last night worried about the economy, Europe or virtually anything else....wake up, all is fine. The new world order of Gold, Silver and Oil is "fixing" everything. Duration buying is taking a pause into the euphoria and supply will be announced in the belly on Thursday. The 2 year was priced for perfection and supply has the added fun of Ben's Inaugural Gab-Fest. We continue to focus on the 5 year and the issue is showing signs of fatigue.
More chatter from China about the role of the Renminbi in the world and trading oil in "things" other than dollars is circulating. We get the sense that a morning surprise will center on these issues in the weeks ahead. The low near term volatility readings in capital markets and rising term structures show a belief in future shock. The future is soon.