Watch this space.

What we said ten days ago.

The Italian 10-year government bond is 112 bps through the U.S. 10-year note yield, and the country doesn’t have an independent central bank!   Moreover, the Germans are coming to town at the ECB very soon.   How is that for pricing risk?  – Global Macro Monitor, May 9

A must view video as Martin Wolf dishes on Italy and her dysfunctional politics.  It looks like the Germans and Italians are, once again, headed for loggerheads.

“Italy is the big one” – Martin Wolf

The macro swans are starting gather at a rapid pace as the Fed tightens the screws, and it is about to get much tighter.

The Fed is on schedule to reduce its balance sheet by another $330 billion by year end,  including a reduction of $198 billion in Treasuries and $132 billion in MBS.   Moreover, more rate hikes are coming.  – Global Macro Monitor, May 10

Getting treacherous out there.  Bull and bear traps everywhere!