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Good morning. In the run-up to Friday’s Jackson Hole remarks by Chair Warsh, we are likely to hear several market commentators state that bond markets are "testing" the Federal Reserve by pushing longer-term yields higher. Yet the specific market indicators that would support that narrative don't align. If markets are testing anyone—and I am skeptical of that formulation—they are testing the federal budget's capacity to make room for the significant uptake in the financing demand of a tech sector poised to transform productivity and enhance growth and prosperity. Rather than framing this as who is testing whom, a more accurate view is that markets are looking at a massive calendar of public and private bond issuance at a time when some demand-side anchors historically (China, Japan, GCC flows, etc.) face their own internal issues that limit appetite for US bonds. #economy #markets #federalreserve #bonds #yields