The New Normal..

The Market seems to be fascinated with talk of a new normal.

How about this one. Ackman has his play half right. Long rates are where the upward pressure lies, as the 30-05 curve says. However, Ackman may be on the wrong side of the flat rate direction. The 5 year rate today after the employment report suggests that a setback in the economy may be looming, suggesting lower rates across the spectrum.

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