Who is the dog and who is the tail? Of course, that changes all the time but right now I think the bond market is emerging as the dog, taking over from the dollar. Yesterday's column (sorry, I was distracted yesterday and could not blog) was about how the two-year Treasury note yield has plummeted over the past few weeks. It is now rather close to zero, where Treasury bills have been for the past year.
Check this chart to see why this is more significant than meets the brain. When it meets the eye, you will surely see (don't call me Shirley).
This suggests a flight to safety again. TED spread easing a bit higher. Gold unrelenting. Stocks volume still low.
As the title of the column should have been - Something's Gotta Give.
As Jimmy Cliff would sing - The harder they come the harder they fall.