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Well, we had pretty big gains in the US stock market on Monday.

We gave back a good chunk of those gains today.

If you remember from the podcast that I recorded on Friday, I thought that there was a chance that we could have a big sell off on Monday rather than a big rally, both based on the week technicals where the market closed off the week.

But also on the fact that it appeared that the markets were finally taking notice of the sharp rise in interest rates, which I think are particularly problematic, especially for the growth stocks.

So I went over that on Friday's podcast.

So if you haven't listened to that one, make sure you listen to that probably before you listen to this one.

But what I said on that podcast was that unless the Federal Reserve came out over the weekend and did something or said something to reassure the markets so that they would not be as worried about rising rates.

In fact, one of the things that the markets have been worried about is that this backup in long term interest rates means that the Fed is going to react by raising short term interest rates much sooner than everybody expects.

That has been one of the stories that has been responsible for the sell off in the price of gold.

It's the belief that the Fed is going to hike sooner rather than later and rising long term bond yields were simply fueling that narrative.

Well, we didn't get any positive statements from the Fed, but we did get some action from another central bank, the reserve bank of Australia.

Pretty much as soon as the market started trading down under, they announced a doubling of the size of their daily bond purchase program.

You know, they're doing quantitative easing over there in Australia as well.

And so they doubled the size of their program.

They went from buying two billion dollars worth of bonds per night to buying four billion dollars worth of bonds.

And this immediately sent the yield on the Australian 10 year government bond plunging, I think from maybe 1.72% down to 1.61.

They had seen yields recently, I think in the last few days, had gotten as high as 1.95%.

So getting close to 2%.

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