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In a day full of upside catalyst for the reflation trade including the strong TIPS auction, the speculation that the Obamacare repeal effort is back on track, and perhaps best of all the absence of hard data (today's Philly Fed "soft data" was, well, quite soft), the dollar, the S&P and Treasury yields all rose, after Treasury Secretary Steven Mnuchin said that "we are close to bring forward major tax reform", refuting speculation that it may be delayed into 2018.

As RBC's head of cross asset strategy remarked yesterday, a key validation of whether the reflation trade may be coming back, was the market's response to today's 5-Year TIPS auction, which priced at 1pm.

So those looking for confirmation that the reflation trade has at least another life left in it, will be glad to know that today $16.0 billion 5-year TIPS auction this afternoon went especially well, in line with all of last year's TIPS auctions, and the cherry on top was a record buyside takedown suggesting that at least for now, bidders believe that reflationary forces remain.

Authored by Kevin Muir via The Macro Tourist blog,

Lately there has been all sorts of chatter about the collapse of Chinese Iron Ore prices. There can be no denying, the chart looks like death.

A move from 95 to 65 is more than 30%. Given it happened in a little over a month, the decline has been horrific.

What does this mean?

Former hedge fund hotel darling Ocwen Financial plunged over 50% after the North Carolina Commissioner of Bank and state mortgage regulators from over 20 states issued a Cease and Desist order to subsidiaries of Ocwen to address mishandling of consumer escrow accounts and a deficient financial condition. Specifically, the order prohibits the acquisition of new mortgage servicing rights and the origination of mortgage loans by Ocwen Loan Servicing.

The summary findings from the C&D (link)

In Crispin Odey's latest letter to investors, the billionaire hedge fund manager laments "how quickly everything has changed", notes that "without the reflation fireworks, equity markets feel vulnerable", and concludes that while a year ago it was easy to be bearish - China was slowing, world trade was creaking, Europe was not recovering and the oil price was hitting new lows - "a year later to be bearish feels lonely, despite the fact that the reflationary story of the past year looks difficult to sustain and auto loan lending has joined a long list of risks along with Trump and Br