Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.

Well, hello and welcome to the Wednesday edition of DC today. We're going to be going quick today.

Interesting day in markets. I'll cover what

took place and a couple other market news items. And then I am running into a client meeting and then

running to an airport as I will be fine to New York City tonight and I'll be in the New York

office tomorrow bringing you yet another DC today.

Look, I do think the big, I've talked about already quite a bit.

So the bond yield story really is the big story right now.

It's hurting risk assets.

It's keeping risk assets from catching much of a bid right now, just in terms of the short-term

technical realities

of what's happening in the markets, that as yields have continued to go higher, it's very

difficult for a market that is totally dependent upon multiple expansion to see stock prices move

higher. You're not going to get multiple expansion when bond yields are moving higher.

And yet you can see in the Fed funds futures market, and this was actually the question that came in today for Ask David, that the financial markets are telling you that they don't

believe the Fed is going to be raising rates anytime soon.

And so for bond yields to be going higher when the Fed will be very is going to be raising rates anytime soon. And so for bond yields to be going

higher when the Fed will be very likely staying put for the foreseeable future and possibly for

good. And then I think going into cuts into next year, it really does suggest to me a very plausible

conclusion, logically speaking, that there is a

supply issuance issue with treasuries, that when you have more supply, you get higher,

excuse me, lower prices, which means higher yields. And I think that is what is forcing

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