Good Morning on this best day of the week, Wednesday,
Bonds are on sale and its not for any other reason today than some technical trading.
First, the Bank of Canada unexpectedly raised their lending rate by .25% which reverberates across the system. Second, the 3.68% yield on the ten-year note was breached and we just couldn’t get back below it. When that happens, it opens the next trading channel, and it was filled quickly today (especially with the news from Canada). The ten-year is now at 3.79% and we need to hold here. There is no economic data to help, and no Fed speak during the blackout period before the meeting next Wednesday. Tomorrow brings unemployment claims data for last week, but I would not expect a big reaction to that regardless of the number.
Something we are still dealing with, being on the cusp of a recession. Will we dip into one or not? The data says yes as do the warning signals (inverted yield curves) but we still move forward.
Last, with no data or economic news to share, let’s talk about the really important stuff.
The PGA and LIV are merging?
The money has won. The PGA Tour spent the better part of a year trying to convince the planet that it held some kind of high ground—asking for loyalty from its players and arguing that joining LIV was tantamount to “sports-washing” the grim human rights record of its sponsor.
It couldn’t offer the eight and nine-figure guarantees that LIV was paying, so it played to golf’s conscience, whatever that was supposed to be.
Now it’s over. The PGA Tour and LIV will live under one flag, chaired by Yasir Al-Rumayyan, the Governor of the Saudi Public Investment Fund.
PGA Tour boss Jay Monahan—who had led the charge against LIV, calling it “a foreign monarchy that is spending billions of dollars in an attempt to buy the game”–will be CEO of the new entity. The Europe-based DP Tour is also part of the deal.
Shorter version: After shaming players for taking the money, the PGA Tour is… taking the money.
Please remain safe and stay healthy, make today great!