Business

While we doubt anything material will emerge for various obvious reasons, the NY Post reports that the DOJ is probing Goldman Sachs for alleged Treasury auction rigging: the charge is that Goldman, one of the 23 US primary dealers, won almost all Treasury bond auctions from 2007 to about 2011 even after the Treasury department established safeguards to maintain competitiveness. The case is said to center on chats and emails showing Goldman traders sharing price information with traders at other banks:

Today's FOMC announcement at 2:00pm is expected to be mostly a non-event, and the only incremental information will be what is contained in the updated statement, which comes one month ahead of the Fed's next expected rate hike in June. There will be no press conference and no update to the summary of economic projections. The statement is expected to incorporate modest changes to reflect recent (mixed) data but see the risks around the meeting are low.

Here is what Wall Street consensus looks like ahead of 2pm:

Update: PUERTO RICO FEDERAL BOARD FILES BANKRUPTCY CASE IN U.S. COURT

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Following API's surprisingly large drawdowns, DOE almost completely refuted it with an inventory build for gasoline and a very small draw for crude. WTI and RBOB prices dropped on the headlines, not helped by yet another increase in US crude production to cycle highs.

API

• Crude -4.158mm (-3.5mm exp) - biggest since 2016
• Cushing -215k
• Gasoline -1.93mm (+1mm exp)
• Distillates -436k

DOE

Our article regarding Sub-Prime 2.0 garnered a lot of attention.

After all, we’re talking about a $1.2 trillion credit bubble in auto-loans, with roughly 1 in 3 new loans going to sub-prime borrowers.

Today we’re building on that theme with some chart analysis.

One of the best means of wrapping your ahead around an industry is to examine the charts of its 3 biggest players.