Last week was an appropriate tribute to a song from the 1960s in which the news is looked upon as just so much blather about drivel and evil events. The fears of EBOLA, SECULAR STAGNATION, ISIL, COLLAPSING ENERGY PRICES and EUROPEAN ECONOMIC COLLAPSE converged to create volatility and fear in all asset classes. The nervousness about global equity markets collapsing caused the bond yields to dramatically decline, which led to a capitulation by BOND MARKET SHORTS. In my opinion the volatility in the bond markets was also the results of decreased market making abilities of money center banks due to increased capital regulations. (This is not a commentary on the increased regulations but just an observation about market impacts). Also, many market actors have been selling volatility in an effort to increase returns and got burned for their efforts.