From: Douglas Grandt answerthecall@icloud.

com
Subject:Scuttle S.1460 in deference to your legacy. Don't bet the farm on oil & gas
Date:February 26, 2018 at 12:39 PM
To:Brian Hughes (Senate ENR Ctee-R) Brian_Hughes@energy.senate.gov, David Poyer (Senate ENR Ctee-D)
david_poyer@energy.senate.gov, Michael Pawlowski (Sen. Murkowski) michael_pawlowski@murkowski.senate.gov,
Travis Lumpkin (Sen. Cantwell) Travis_Lumpkin@cantwell.senate.gov
Cc: U. S. Senator Bernie Sanders senator@sanders.senate.gov, Michaeleen Crowell (Sen. Sanders)
Michaeleen_Crowell@sanders.senate.gov, Katie Thomas Katie_Thomas@sanders.senate.gov

Dear Chairman Lisa Murkowski and Ranking Member Maria Cantwell,

Are you certain the oil and gas are so stable that they should continue to be the assumed
underpinning of American energy policy? Could a 3% yield on 10-year Treasury note be
oil and gas’ Achilles heal?
What if the financial analysts and market strategists are even close to being right, and 3%
turns out to erode the foundation of ExxonMobil, Chevron and other oil and gas majors’
foundations—along with the entire equities market—and their houses of cards collapse
on your watch. You’d be wise to retract S.1460, reconsider the risks and restructure it.
Why are you risking your political careers on a gamble that oil and gas remain solvent?
I wouldn’t if I were you. I'd consider the downside risks and plan for contingencies.
I am a former Corporate Planner for a multi-billion dollar corporation. Listen up!
Best regards,
Doug Grandt

Why 3% is the scariest number for stocks

by Matt Egan and Danielle Wiener-Bronner | February 25, 2018 | Bit.ly/CNN25Feb18
Bond jitters persist: One number threatens to derail the stock market comeback.
The Dow has recovered almost two-thirds of the ground it lost during the sell-off earlier
this month. Yet stocks remain fragile — and subject to the whims of the bond market.
Each time the yield on the 10-year Treasury note creeps closer to 3%, a level not seen in
Each time the yield on the 10-year Treasury note creeps closer to 3%, a level not seen in
four years, fears re-emerge about inflation and a less friendly Federal Reserve.
"It really is quite amazing how quickly sentiment toward the market has shifted," Bespoke
Investment Group wrote in a recent report. "A fog of unease has definitely set in as
investors fret over the Fed, rising interest rates and inflation."
After starting the year at just 2.4%, the 10-year yield spiked to a four-year high above
2.95% on Wednesday. That freaked Wall Street out. A 303-point surge on the Dow
disappeared.
Even market optimists warn that a climb above 3% could cause turbulence that would
rival the plunge that began three weeks ago.
"3% is still hanging like a sword of Damocles over risky assets, and that's not going
away," Michael Block, chief market strategist at Rhino Trading Partners, wrote in a recent
report.
A "painful break" in bonds would probably drive the S&P 500 back toward its February 9
low of 2,592. That's roughly 5% below its current level.
Of course, a 3% Treasury yield is no reason to panic. It remains very low historically. And
the U.S. economy may be strong enough to withstand the sell-off in the bond market
that's driving yields higher.
But the relentless climb in bond rates is a big deal because the 10-year Treasury yield
helps set the price for virtually all other assets. Years of low yields on safe bonds sent
cash pouring into risky stocks and pumped up their values. A reversal of that trend could
slow the stock market down.
Higher Treasury yields also increase the cost of borrowing for businesses, consumers
and, of course, the federal government. Mortgage rates have already climbed to levels
last seen in April 2014.
Rates have been rising because of the strengthening economy, stronger inflation and the
growing federal deficit, which is forcing the U.S. Treasury to issue more debt.
Bank of America (BAC) expects Treasury's total borrowing needs to nearly double from
last year to over $1 trillion in the next two fiscal years. The bank on Friday upgraded its
year-end forecast for the 10-year Treasury to 3.25%.
"We believe that rates in the U.S. can continue to reprice higher," Bank of America wrote.
That suggests stocks may be in for a bumpy ride.

http://money.cnn.com/2018/02/25/investing/stocks-week-ahead-10-year-
treasury/index.html