Wrap

With the US on holiday, there was not much direction to the markets today.

• Generally, longer-term govt. yields were up,
• Energy mixed,
• most non-US markets down, although Europe managed a rally.

Chart for the day

M3, broad money, has risen by 400bln in the last year. This is about 20% of GDP. At the moment, people are not spending this, but are forced savers. At some point, they will try to consume. If this doesn’t jack up inflation, I don’t know what will. It’s very low now, but it rarely stays this low for long: