Business

The last time the US Treasury had a solid 2Y auction the paper was trading very special in repo, suggesting a major short squeeze was inevitable, and that is precisely what happened.  However, there was no explanation why today's just concluded sale of $26 billion in 2 year paper was as blisteringly hot as it was: it certainly wasn't the repo market, as the paper was trading comfortably north of the Y-axis all day, suggesting there was no forced squeeze into the auction.

Update: According to CNBC, there will be no imminent settlement report, which just confirms that as we warned in the original post, the NY Post continues to be mostly a source of disinformation and hedge funds peddling their own positions.

Last Friday we first reported on two surprising developments: one was a record accumulation of crude tankers on anchor or steaming just off the coast of Singapore in the Straits of Malacca, awaiting higher oil prices to offload their precious cargo; the second was that as a result of previously profitable contango trades now flattening and making storage no longer profitable, oil shippers are now forced to ask for bank loans to fund offshore storage costs.

Because nothing says 'fiduciary' duty like waiting until Europe closes to dump $850 million notional of gold...

To the tick 1130ET - when European stocks close - gold started to be dumped...

And Silver...

As The USD was suddenly bid...

Charts: Bloomberg

Via Valuewalk.com,