There is no shortage of "stuff" going on in the world but markets evaluate all inputs similarly. This is the MOTS (more of the same) market. Sharply negative yields into the intermediate sector of the curve are the foundation of the advance. We feel the price of oil and gasoline are damaging the public more than the MOTS crowd is pricing. The high correlation of trades evident in April will make for a volatile May.

The ability to avoid stocks, bonds and the dollar falling together - a capital flight "end game" event - has kept the QE gambit on the pass line. A "moderate" sized ALL new cash refunding is the near term event we'll be watching.

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