10 years yield broke upside channel - and FOMC member keeps talking rubbish..

This break, if confirmed, is big becaise:

•  It has caught market off-guard. Money & Fixed Income funds getting hammered.
•  It's against FED's intention.
•  The public outrage with QE2 has a the very least the impact it lowers the "feel good" factor - the indirect effect of marginally lower rates... despite this FOMC Dudley made these comments, which to me, is the least convincing support for QE2 I have seen so far...: FED's Dudley in weak support for QE2
• Greece Finance again in quesiton: Greece gets yet another visit from IMF and EU

Today is all about Ireland bail-out - we think the most like outcome being: Singled out emergency help to Irish banks - the EFSF then effectively become the European TARP!  This raises major political issue: Bailing-out banks again! - Wait and see we are close to Europe's voters saying enough is enough  - social tension is rising and rising fast.

Ciao,