The debate on the first objection was just getting underway this afternoon when the Capitol was overtaken by protestors.

Despite that, stocks held up throughout the afternoon. That's because the Senate race in Georgia looks like a democrat sweep, which would flip the Senate under a Biden presidency. 

That scenario means a big government spend coming down the pike.  And to be sure, adding a multi-trillion-dollar spend to the existing mix of fiscal and monetary stimulus means the value of your cash is being trashed. 

With that, it's (continued) lift off for asset prices today.  Translation: the value of your money goes down, the price of things go up. 

And as we discussed yesterday,  the 10-year yield is the spot to watch for the signal that the market is coming to the conclusion that, not just some inflation, but hot inflation is coming — and that the Fed will be caught behind the curve.

With that, even though the Fed continues to gobble up Treasuries, the yield on the 10-year traded as high as 1.05% today — the highest since March 20th.   

Add to that, if you're a global investor holding U.S. Treasuries, the domestic chaos today gives you even more reason to exit what has long been deemed the safest, most liquid investment in the world (the U.S. Treasury market).  That, of course, puts more downward pressure on Treasuries, upward pressure on rates — which would mean an even bigger challenge is ahead for the Fed.