Europe

• Crude Soars as Output Deal Weighs on Bonds; China Shares Tumble (BBG)
• 10-Year Treasury Yield Above 2.5% for First Time in Two Years (WSJ)
• The New Reality of TV: All Trump, All the Time (NYT)
• Fed May Struggle to Signal What Comes After December (WSJ)
• China warns Trump against ignoring its Taiwan interests (Reuters)
• China’s Stocks, Bonds, Yuan Slump in Unison on Liquidity Concern (BBG)
• Sovereign funds pulled cash from world markets for third year running (Reuters)
• Trump Adds To Criticism Of Companies (WSJ)

A euro crisis and contagion is almost certain in 2017, Irish economist and writer David McWilliams has warned:

"It is almost certain that there will be another euro crisis in 2017. The last time we had a euro crisis, the focus of attention was Greece; today the vortex is Italy.

The global bond rout returned with a bang, sending 10Y US Treasury yields as much as six basis points higher to 2.53%, the highest level in over two years. The selloff happened as oil prices surged by more than 5% following Saturday's agreement by NOPEC nations agreed to slash production, leading to rising inflation pressures. At last check, the 10Y was trading at 2.505%, up from 2.462% at Friday and on track for its highest close since September 2014, according to Tradeweb.

Submitted by Jim Quinn via The Burning Platform blog,

By Chris at www.CapitalistExploits.at

Today we discuss the largest wholesale funding market in the world, the eurodollar market, and how its "normal" form of functioning has dramatically changed, causing all manner of problems in the global economy. 

In last week's post we discussed shadow banking at its finest: the eurodollar market. It was the precursor to this article and so if you've not read it then it'll be useful to do so here before reading this article.