US Federal Reserve

Following the Trump presidential victory, two prominent macro strategists have undergone a significant change in their outlook: while David Rosenberg, who started off with a deflationary, and bearish outlook, then flipped to inflationary (and bullish), has recently once more "mean-reverted" and expects a further drop in yields as deflationary forces return, his SocGen peer, Albert Edwards - while still expecting a deflationary "ice age" in the longer-run (in case there is any confusion, he expressly states "make no mistake.

Via Brandon Smith of Alt-Market.com,

It is an unfortunate reality that most people tend to be oblivious to massive sea changes in geopolitics and economics. You would think that these events would catch the immediate attention of everyone as they happen, but usually it is not until they realize that the microcosm of their personal lives is subject to the consequences of the macrocosm that they wake up and take notice.

In what could be the beginning of ripples from The Fed's jawboned 'certainty' of a March rate-hike, Chinese money market liquidity conditions appear to be drying up once again as overnight offshore yuan rates surge 142bps to one-month highs.

Additionally,  1-week CNH Hibor +1.05 ppts to 4.53017%; and 1-month CNH Hibor +70bps to 4.9395%

At the same, spot offshore Yuan rates have plunged to their lowest since January 4th's massive short squeeze.

Trump might want to put a call in to Janet Yellen.

The Fed is supposed to be a neutral, independent entity. However, that myth went out the window when Bernanke “gifted” QE 3 to Obama in 2012 to aid with the latter’s re-election bid.

Via Kevin Muir of The Macro Tourist blog,

Last week’s hawkish Federal Reserve guidance sent the front end of the yield curve for a tailspin. In the process, the odds of a March hike went from less than 50% to almost 100%.

The movement in the Fed funds futures curve was swift and vicious. The whole curve shifted higher (in terms of yield), but the April future backed up the most.