Markets: The yen was the laggard to start the week and some of that was a tick higher in Treasury yields but I suspect the bulk of it is worry about what the Bank of Japan may do later. Governor Ueda has developed a reputation as a bit of a wild card and with the fall in global yields, now might be an opportune time to abandon YCC completely. On the Fed front, Chicago Fed President Goolsbee was on CNBC and asked if he would pushback on Powell’s dovish message. Instead, he flipped it and pushed back on what Williams said on Friday (something that was seen as hawkish at the time); Goolsbee argued that what Williams said was no different than Powell. In any case, we’re into the time of year where flows dominate fundamentals. The dollar chopped around but did little against the euro. The commodity currencies fell despite higher commodities and better risk appetite. We’re into an extremely bullish time of year for risk assets in general, so keep that in mind. Here’s a good line from Ian Lyngen at BMO that summarizes the current macro landscape: Unfortunately we won’t get much impactful US economic data this week.

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