Somewhat incredibly, the US has embarked on fiscal expansion, this when the national debt as a proportion of GDP stands at the highest level since WWII.

This isn’t the first and won’t be the last time the Americans quarrel over how much they can borrow.

Coupled with the Fed’s normalization, this changes the demand and supply picture for US treasuries.

The first week of 2018 appeared to indicate continued risk appetite and exuberant sentiment, with some good reasons and some cautions.