Stocks rallied  ahead of the Fed minutes publication but ultimately closed lower as us 10 year bonds yields climbed 5bps to a new high for the cycle at 2.95% in response to minutes of the last FOMC meeting suggesting that the Fed grew more positive about the economic outlook. The statement cited  “substantial underlying economic momentum,” and was increasingly optimistic about achieving its inflation objective. After trading higher for most of the day, the Dow dropped

500 points from its highest level of the day, leaving  major indices down 0.5% yesterday. The dollar gained and gold traded -0.2%  lower in dollar terms. This failed stock market rally is one more indication that there are sellers out there, as expectations of higher rates and a high positive correlation across asset classes continue to dampen sentiment. On currencies, the sharp fall in AUDJPY sent a strong risk aversion signal as well as does the curent bout of CHF strength (vs. EUR).