Just a week ago we warned of China's record glut of Iron Ore (enough to build 13,000 Eiffel Towers), and following warnings from Barclays and RBA of a likely pullback, futures in Dalian sank to lowest since November as steel sags.
Unlike last month's unexpectedly week consumer credit report, which saw a plunge in revolving, or credit card, debt moments ago the Fed, in its latest G.19 release, announced that there were few surprises in the February report: Total revolving credit rose by $2.9 billion, undoing last month's $2.6 billion drop - the biggest since 2012 - while non-revolving credit increased by $12.3 billion, for a total increase in February consumer credit of $15.2 billion, roughly in line with the $15 billion expected.
For all the talk of record (at least until recently) speculative Treasury shorts, rising inflation and a guaranteed selloff in long-dated debt - at least according to virtually every sellside desk on Wall Street - one group of investors is clearly on the other side of the trade: Wall Street itself.
According to the Fed's latest weekly Primary Dealer holdings report, the net positions in Treasury coupons due in 11 or more years is now the highest in records dating back to 2001, rising by $3.8 billion to $26.5 billion as of the last week of March.
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Shortly before 1pm ET, a sharp spike in the USDJPY on high volume, which has since moved the USDJPY up by over 50 pips on short notice...
... and sent TSY yields well above the key 2.30% quadruple (or maybe quintuple bottom) support level...
... as well as pushing stocks ro session highs. The jerk higher in the USDJPY also slammed gold to overnight session lows.
It was not clear what was the catalyst for the sharp move, however shortly before the move Bill Dudley spoke, discussing the future of the Fed's balance sheet: